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Discussion Paper Details

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Title: Spatial frictions

Author(s): Kristian Behrens, Giordano Mion, Yasusada Murata and Jens Südekum

Publication Date: September 2011

Keyword(s): city-size distribution, markups, productivity, trade frictions and urban frictions

Programme Area(s): International Trade and Regional Economics

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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=8572

Bibliographic Reference

Behrens, K, Mion, G, Murata, Y and Südekum, J. 2011. 'Spatial frictions'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=8572