EconPapers    
Economics at your fingertips  
 

A tale of two cities: Communication, innovation, and divergence

Stefano Magrini and Alessandro Spiganti

Economic Inquiry, 2024, vol. 62, issue 1, 390-413

Abstract: We present a two‐area endogenous growth model where abstract knowledge flows at no cost across space but tacit knowledge arises from the interaction among researchers and is hampered by distance. Digital communication reduces this “cost of distance” and reinforces productive specialization, leading to an increase in the system‐wide growth rate but at the cost of more inequality within and across areas. These results are consistent with evidences on the rise in the concentration of innovative activities, income inequality, and skills and income divergence across US urban areas.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/ecin.13175

Related works:
Working Paper: A Tale of Two Cities: Communication, Innovation, and Divergence Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ecinqu:v:62:y:2024:i:1:p:390-413

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0095-2583

Access Statistics for this article

Economic Inquiry is currently edited by Preston McAfee

More articles in Economic Inquiry from Western Economic Association International Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().

 
Page updated 2024-07-01
Handle: RePEc:bla:ecinqu:v:62:y:2024:i:1:p:390-413