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Cities, regions and the decline of transport costs (2004)

Glaeser, Edward L. ; Kohlhase, Janet E.

Oxford, UK : Blackwell Publishing Ltd

Papers in regional science 83 (2004), S. 0

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ISSN: 1435-5957

Source: Blackwell Publishing Journal Backfiles 1879-2005

Topics: Geography , Economics

Notes: Abstract. The theoretical framework of urban and regional economics is built on transportation costs for manufactured goods. But over the twentieth century, the costs of moving these good have declined by over 90% in real terms, and there is little reason to doubt that this decline will continue. Moreover, technological change has eliminated the importance of fixed infrastructure transport (rail and water) that played a critical role in creating natural urban centres. In this article, we document this decline and explore several simple implications of a world where it is essentially free to move goods, but expensive to move people. We find empirical support for these implications.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1007/s10110-003-0183-x

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