Market allocations of location choice in a model with free mobility

Regional Growth and Regional Decline

“…This assumes some indivisibility in the way they spread their consumption and production activity across space, and also assumes -for space to play a determining role -that there are transaction or transport costs involved when consumption and production are geographically separated. These are realistic assumptions, but they cause the competitive paradigm to break down (Starrett 1978). A sufficient condition for this breakdown is that different locations have the same characteristics.…”

Internal Geography, International Trade, and Regional Specialization

“…In addition, any bilateral trade flow in the country either originates from ports, or is directed toward them. These features allow us to represent a two-dimensional geography on the line, leading to closed-form characterizations for aggregate 6 This outcome is akin to the spatial impossibility results in the tradition of Starrett (1978), whereby homogeneous space and constant-returns-to-scale technologies lead to autarkic locations. In our setting, the only heterogeneity across space is the distance to the port.…”

Clusters et stratégies de clusters : le cas du pôle de compétitivité « solutions communicantes sécurisées »

“…Ces développements prennent le parfait contre-pied de l'éco-nomie politique, qui a en effet longtemps ignoré l'espace, jusqu'à produire un « théorème d'impossibilité spatiale » (Starrett, 1978). Dans un monde de rendements non croissants et sans contraintes d'indivisibilité, le problème de la localisation des activités ne se pose simplement pas.…”