On quantitative spatial economic models

Kristian Behrens and Yasusada Murata

Journal of Urban Economics, 2021, vol. 123, issue C

Abstract: We show that spatial equilibrium conditions in workhorse models of quantitative spatial economics (QSE) can be generated by the McFadden (1974) model together with the condition that the individual choice probability of a region equals the population share of that region. Thus, recent models of QSE and one of the oldest location choice models can rationalize the same change in equilibrium following shocks to economic fundamentals. However, their welfare implications—even conditional on the same change in equilibrium—may differ, depending on the specification of preferences and on the type of shocks we consider.

Keywords: Quantitative spatial economics; Location choice models; Spatial equilibrium conditions; Welfare (search for similar items in EconPapers)
JEL-codes: R1 R3 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0094119021000309
Full text for ScienceDirect subscribers only

Related works:
Working Paper: On Quantitative Spatial Economic Models (2018)
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:eee:juecon:v:123:y:2021:i:c:s0094119021000309

DOI: 10.1016/j.jue.2021.103348

Access Statistics for this article

Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange

More articles in Journal of Urban Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().