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Regional Disparities and Efficient Transport Policies 365 Redding, S. J., and Venables, A. J. 2004. Economic geography and international inequality. Journal of International Economics, 62, 53–82. Rossi-Hansberg, E. 2005. A spatial theory of trade. American Economic Review, 95, 1464–1491. Spulber, D. F. 2007. Global Competitive Strategy. Cambridge: Cambridge University Press. Syverson, C. 2004. Market structure and productivity: A concrete example. Journal of Political Economy, 112, 1181–1222. Takahashi, T., Takatsuka, H., and Zeng, D.-Z. 2013. Spatial inequality, globalization, and footloose capital. Economic Theory, 53, 213–238. Thomas, I. 2002. Transportation Networks and the Optimal Location of Human Activities: A Numerical Geography Approach. Cheltenham, UK: Edward Elgar. Van der Loo, S., and Proost, S. 2013. The European road pricing game: How to enforce optimal pricing in high-transit countries under asymmetric information. Journal of Transport Economics and Policy, 47, 399–418. Williamson, J. G. 1965. Regional inequality and the process of national development: A description of the patterns. Economic Development and Cultural Change, 13, 1–84. Zeng, D.-Z. 2014. The role of country size in spatial economics: A survey of the home market effects. Journal of Economics and Business, 32, 379–403.
9 Skilled Cities and Efficient Urban Transport Stef Proost and Jacques-François Thisse Abstract This chapter surveys the fundamental forces that drive the formation and size of cities. We discuss the different types of agglomeration economies generated by a dense web of activities, with special emphasis on the benefits associated with the clustering of highly skilled workers. The distribution of activities within cities results from the trade-off between commuting and housing costs. We show that in this trade-off commuting costs are the cause and land rent is the consequence. The land rent capitalizes the advantages associated with proximity to particular urban locations such as employment centres. We identify the main sources of inefficiency in various urban policies implemented in Europe. Special attention is paid to the regulation of the land market and the pricing of urban transport. 9.1 Introduction The main distinctive feature of a city is the very high density of activities and population, which allows agents to be close to one another. Households and firms seek spatial proximity because they need to interact for a variety of economic and social reasons on a daily basis. For example, individuals want to be close to each other because they like to meet other people, learn from others, and have a broader range of opportunities. Hence, the main reason for the existence of cities is to connect people. This need is gravitational in nature in that its intensity increases with the number of agents set up nearby, and decreases with the distance between them. Contrary to an opinion widespread in the media, and despite the Internet and other new communication devices, face-to-face contact remains important, at least for a certain number of human and economic activities. To understand why this is so, one has to remember that information transferred through modern communication tools must be structured according to clearly defined schemes and codes known to all. Only formal and precise information can be transmitted this way. In contrast, information that is difficult to codify can often be conveyed only through face-to-face contact. 366
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Economics without Borders If treate
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xx Foreword Another important facto
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Contributors roberto barcellan Euro
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Introduction Richard Blundell, Este
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Introduction 15 involved). Another
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Introduction 17 proportion of rail
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Introduction 21 private equity mark
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1 Innovation and Growth: The Schump
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Innovation and Growth: The Schumpet
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European Union Dual Labour Markets
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Winners and Losers of Globalization
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Country mean score 1.5 1.2 0.9 0.6
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634 Index Diversified Cities, 385 D
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636 Index Native Population, 114, 1
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