On Quantitative Spatial Economic Models

17 Pages Posted: 21 Mar 2018

See all articles by Kristian Behrens

Kristian Behrens

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

Yasusada Murata

Nihon University

Date Written: March 7, 2018

Abstract

Quantitative spatial economics (QSE) specifies various components such as preferences, production technology, and frictions for the movement of goods, people, and ideas. Despite the long literature on endogenous location decisions, the question of how these specifications affect resulting spatial equilibria has not been systematically explored. In this paper we start with workhorse models of QSE based on different specifications of preferences and show that spatial equilibria in those models can be generated using the conditional logit model by McFadden (1974). Our result suggests that existing models of QSE have a common origin in one of the oldest location choice models.

Keywords: quantitative spatial economics; location choice; logit; spatial equilibrium

JEL Classification: F12; F14; R12; R13

Suggested Citation

Behrens, Kristian and Murata, Yasusada, On Quantitative Spatial Economic Models (March 7, 2018). Higher School of Economics Research Paper No. WP BRP 184/EC/2018, Available at SSRN: https://ssrn.com/abstract=3144376 or http://dx.doi.org/10.2139/ssrn.3144376

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

Yasusada Murata

Nihon University ( email )

Tokyo
Japan

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