Working Paper: CEPR ID: DP10790
Authors: Stef Proost; Jacques-François Thisse
Abstract: The three themes of this survey?cities, regions, and transport?are closely intertwined and gathered in the category R of the JEL Classification System. We discuss cities and regions in separate sections because they are different spatial units facing specific problems. Transport issues affect both cities and regions and are discussed in each relevant section. The introductory remarks explain both the reason for this division, as well as what spatial economics is all about. Because general economists have barely met the words cities, regions, and transport during their studies, we explain what the field of spatial economics is and define basic concepts that might not currently be in their tool box. The second section is devoted to cities; the third focuses on regions. We conclude with general policy recommendations.
Keywords: cities; land; congestion; region; trade; transport
JEL Codes: R00
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Lower transportation costs (L91) | Increased sensitivity of firms to location differences (R32) |
| Lower transportation costs (L91) | Higher economic activity levels in cities (R11) |
| Urban agglomeration economies (R11) | Higher wages for workers in larger cities (J39) |
| Spatial distribution of human capital (J24) | Regional disparities in economic performance (R11) |
| Employment density (J69) | Productivity (O49) |