The Competitive Paradigm in Spatial Economics

17 Pages Posted: 28 Sep 2016

See all articles by Jacques-François Thisse

Jacques-François Thisse

Catholic University of Louvain (UCL); Centre for Economic Policy Research (CEPR)

Date Written: September 27, 2016

Abstract

This paper discusses the reasons for the spatial impossibility theorem, which states that the competitive paradigm cannot explain the formation of large urban agglomerations and trade flows. This result is especially meaningful insofar as it is internal to the theory itself. We then briefly explores different solutions to remedy to this methodological failure.

Keywords: space, transport costs, land rent, general equilibrium

JEL Classification: D50; F12; Q54; Q58; R13

Suggested Citation

Thisse, Jacques-François, The Competitive Paradigm in Spatial Economics (September 27, 2016). Higher School of Economics Research Paper No. WP BRP 151/EC/2016. Available at SSRN: https://ssrn.com/abstract=2844139 or http://dx.doi.org/10.2139/ssrn.2844139

Jacques-François Thisse (Contact Author)

Catholic University of Louvain (UCL) ( email )

Place des Doyens 1
Louvain-la-Neuve, 1348
Belgium

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
61
Abstract Views
317
rank
349,039
PlumX Metrics