The Geography of Development

By Klaus Desmet, D. Nagy, Esteban Rossi-Hansberg. Journal of Political Economy, 2018

207 citations recorded by the source corpus.

We develop a dynamic spatial growth theory with realistic geography. We characterize the model and its balanced-growth path and propose a methodology to analyze equilibria with different levels of migration frictions. Different migration scenarios change local market size, innovation incentives, and the evolution of technology. We bring the model to the data for the whole world economy at a 1° × 1° geographic resolution. We then use the model to quantify the gains from relaxing migration restrictions. Our results indicate that fully liberalizing migration would increase welfare about threefold and would significantly affect the evolution of particular regions of the world.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/194ff62c998f9e39080976db3edfff5abbb673e6

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In Economics and Econometrics

Citations in the corpus

Quantitative Spatial Economics (2017, unknown): “Desmet et al. (2016) calculate equilibria for a grid of 68,400 locations across the world. www.annualreviews.org • Quantitative Spatial Economics 33 A nn u.”
Evaluating the Economic Cost of Coastal Flooding (2018, background): “compute the total loss in physical capital for each time period, as expressed in (11), and the present discounted value of physical capital lost, as expressed in (12).”
The costs and benefits of leaving the EU: trade effects (2017, background): “…DHINGRA ET AL. increasing competition, raising R&D and facilitating the diffusion of ideas within and across countries trade integration can also lead to improvements in technology that raise the gains from trade (Perla et al., 2015; Buera and Oberfield, 2016; Desmet et al., 2016; Sampson, 2016).”
The Economic Geography of Global Warming (2021, methodology): “Supplementary Materials Section I.2 describes the details of this calculation and compares this index to the measure used in Desmet et al. (2018). temperature values.”
Optimal Spatial Policies, Geography, and Sorting* (2018, unknown): “(2015) assume zj′ = (∑ j Lje −δtjj′ )α where tjj′ is travel time between blocks j and j ′ within a city and δ is a decay parameter, while Desmet et al. (2018) study these spillovers at a broader scale.”