Economic Activity Across Space: A Supply and Demand Approach

Treb Allen and Costas Arkolakis

No 30598, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: What do recent advances in economic geography teach us about the spatial distribution of economic activity? We show that the equilibrium distribution of economic activity can be determined simply by the intersection of labor supply and demand curves. We discuss how to estimate these curves and highlight the importance of global geography – i.e. the connections between locations through the trading network – in determining how various policy relevant changes to geography shape the spatial economy.

JEL-codes: F1 R0 (search for similar items in EconPapers)
Date: 2022-10
New Economics Papers: this item is included in nep-geo and nep-ure
Note: ITI
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Citations: View citations in EconPapers (1)

Published as Treb Allen & Costas Arkolakis, 2023. "Economic Activity across Space: A Supply and Demand Approach," Journal of Economic Perspectives, vol 37(2), pages 3-28.

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Journal Article: Economic Activity across Space: A Supply and Demand Approach (2023)
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