CORDIS Project
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This project investigates the causes of economic disparities across regions, focusing on how trade costs and firm-level efficiencies contribute to spatial inequalities. It utilizes historical events, such as the division of Berlin, to analyze the impact of these factors on urban organization and resource allocation.
One of the most striking empirical regularities is the huge divergence in economic activity and income across space.
Economists have pointed to a number of factors as the fundamental causes of these inequalities, including differences in institutions, differences in natural endowments and cultural differences.
More recently research in economic geography following Krugman (1991) has highlighted the importance of trade costs in determining the spatial inequality in economic activity.
The central…
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