2019
DOI: 10.1257/aer.20130249
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A Spatial Knowledge Economy

Abstract: Leading empiricists and theorists of cities have recently argued that the generation and exchange of ideas must play a more central role in the analysis of cities. This paper develops the first system of cities model with costly idea exchange as the agglomeration force. The model replicates a broad set of established facts about the cross section of cities. It provides the first spatial equilibrium theory of why skill premia are higher in larger cities and how variation in these premia emerges from symmetric f… Show more

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Cited by 132 publications
(66 citation statements)
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“…Economists have long argued that the sharing of ideas and information facilitates economic innovation and growth [23,27,[30][31][32][33][34][35][36]. Despite increased international trade and global integration, many scholars agree that innovation is fostered locally through networks of individuals possessing different types and forms of knowledge [23,30,34,37]. Critical to this process of endogenous development is the exchange of diverse types of knowledge and information.…”
Section: Labor Market Conditions For Economic Growthmentioning
confidence: 99%
See 3 more Smart Citations
“…Economists have long argued that the sharing of ideas and information facilitates economic innovation and growth [23,27,[30][31][32][33][34][35][36]. Despite increased international trade and global integration, many scholars agree that innovation is fostered locally through networks of individuals possessing different types and forms of knowledge [23,30,34,37]. Critical to this process of endogenous development is the exchange of diverse types of knowledge and information.…”
Section: Labor Market Conditions For Economic Growthmentioning
confidence: 99%
“…Economists embracing this notion of endogenous growth have shed light on the social assets contained in labor markets that play a critical role in economic development [23,27,28,[38][39][40][41]. Labor markets that foster the sharing of information through random meetings, chance encounters, and the promulgation of diverse perspectives have an advantage over labor markets with more rigid social structures where individuals are comparatively more isolated [23,27-28, 35,36].…”
Section: Labor Market Conditions For Economic Growthmentioning
confidence: 99%
See 2 more Smart Citations
“…What is clear, however, is the growing polarization between cities and regions. Larger cities are more skill‐abundant and display higher skill premiums than smaller cities (Behrens, Duranton, and Robert‐Nicoud ; Davis and Dingel ). In other words, spatial inequality between cities and regions is driven by the uneven distribution of human capital.…”
Section: How To Measure Agglomeration Economiesmentioning
confidence: 99%