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Quantitative Regional Economics

Author

Listed:
  • Treb Allen
  • Costas Arkolakis

Abstract

This handbook chapter presents the major advances made in the field of economic geography over the past decade. It starts by documenting a number of motivating empirical facts. It then shows how a quantitative regional model that combines the insights from two seminal models from an earlier generation can explain these facts. It then presents a unified quantitative framework that incorporates this and many other economic geography models. This unified framework is sufficiently tractable to characterize its equilibrium properties while flexible enough to be combined with detailed spatial economic data to estimate the model parameters, conduct counterfactuals, and perform welfare analysis. The chapter concludes by discussing many extensions of the framework, some of which have already been explored and others which have not.

Suggested Citation

  • Treb Allen & Costas Arkolakis, 2025. "Quantitative Regional Economics," NBER Working Papers 33436, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:33436
    Note: ITI
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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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