Spatial Frictions

63 Pages Posted: 21 Sep 2011

See all articles by Kristian Behrens

Kristian Behrens

University of Quebec at Montreal (UQAM) - Department of Economics

Giordiano Mion

University of Sussex

Yasusada Murata

Nihon University

Jens Suedekum

Heinrich-Heine-University Duesseldorf, Duesseldorf Institute for Competition Economics (DICE); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); Institute for the Study of Labor (IZA)

Multiple version iconThere are 2 versions of this paper

Date Written: September 2011

Abstract

The world is replete with spatial frictions. Shipping goods across cities entails trade frictions. Commuting within cities causes urban frictions. How important are these frictions in shaping the spatial economy? We develop and quantify a novel framework to address this question at three different levels: Do spatial frictions matter for the city-size distribution? Do they affect individual city sizes? Do they contribute to the productivity advantage of large cities and the nature of competition in cities? The short answers are: no, yes, and it depends.

Keywords: city-size distribution, markups, productivity, trade frictions, urban frictions

JEL Classification: F12, R12

Suggested Citation

Behrens, Kristian and Mion, Giordiano and Murata, Yasusada and Südekum, Jens, Spatial Frictions (September 2011). CEPR Discussion Paper No. DP8572. Available at SSRN: https://ssrn.com/abstract=1931081

Kristian Behrens (Contact Author)

University of Quebec at Montreal (UQAM) - Department of Economics ( email )

P.O. Box 8888, Downtown Station
Montreal, Quebec H3C 3P8
Canada

Giordiano Mion

University of Sussex ( email )

Yasusada Murata

Nihon University ( email )

Tokyo
Japan

Jens Südekum

Heinrich-Heine-University Duesseldorf, Duesseldorf Institute for Competition Economics (DICE) ( email )

Universitaetsstr. 1
Duesseldorf, NRW 40225
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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