Klaus Desmet is a Professor at the Universidad Carlos III de Madrid.
We present a theory of spatial development. Manufacturing and services frms located in a continuous geographic area choose each period how much to innovate. Firms trade subject to transport costs and technology diffuses spatially. We apply the model to study the evolution of the US economy in the last half-century and fnd that it can generate the reduction in the...
28 Feb 2019
Developing countries are characterised by large spatial inequalities. In India, for example, poor rural areas coexist with high-tech clusters such as Bangalore. The agglomeration forces underlying the spatial concentration of the IT industry create pockets of high economic growth. Development itself also leads to a reallocation of economic activity across space. As...
4 Sep 2014 | Klaus Desmet, Esteban Rossi-Hansberg
1 Apr 2014 | Klaus Desmet, Esteban Rossi-Hansberg
1 Apr 2014 | Klaus Desmet, Esteban Rossi-Hansberg