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Project Citation: 

Desmet, Klaus, and Rossi-Hansberg, Esteban. Replication data for: Spatial Development. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112755V1

Project Description

Summary:  View help for Summary We present a theory of spatial development. Manufacturing and services firms located in a continuous geographic area choose each period how much to innovate. Firms trade subject to transport costs and technology diffuses spatially. We apply the model to study the evolution of the US economy in the last half-century and find that it can generate the reduction in the manufacturing employment share, the increased spatial concentration of services, the growth in service productivity starting in the mid-1990s, the rise in the dispersion of land rents in the same period, as well as several other spatial and temporal patterns.

Scope of Project

JEL Classification:  View help for JEL Classification
      J21 Labor Force and Employment, Size, and Structure
      L16 Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
      L60 Industry Studies: Manufacturing: General
      L80 Industry Studies: Services: General
      O33 Technological Change: Choices and Consequences; Diffusion Processes
      R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
      R32 Other Spatial Production and Pricing Analysis


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