The Competitive Paradigm in Spatial Economics

Jacques Thisse

HSE Working papers from National Research University Higher School of Economics

Abstract: This paper discusses the reasons for the spatial impossibility theorem, which states that the competitive paradigm cannot explain the formation of large urban agglomerations and trade ows. This result is especially meaningful insofar as it is internal to the theory itself. We then briey explores dierent solutions to remedy to this methodological failure.

Keywords: space; transport costs; land rent; general equilibrium (search for similar items in EconPapers)
JEL-codes: D50 F12 Q54 Q58 R13 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2016
New Economics Papers: this item is included in nep-geo and nep-ure
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Published in WP BRP Series: Economics / EC, September 2016, pages 1-17

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Persistent link: https://EconPapers.repec.org/RePEc:hig:wpaper:151/ec/2016

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