Working Paper
What Future for History Dependence in Spatial Economics?
Abstract: History (sometimes) matters for the location and sizes of cities and neighborhood segregation patterns within cities. Together with evidence on rapid neighborhood change and self-fulfilling expectations, this implies that nature might not completely determine the spatial structure of the economy. Instead, the spatial economy might be characterized by multiple equilibria or multiple steady-state equilibrium paths, where history and expectations can play decisive roles. Better evidence on the conditions under which history matters can help improve theory and policy analysis.
https://doi.org/10.21799/frbp.wp.2020.47
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Provider: Federal Reserve Bank of Philadelphia
Part of Series: Working Papers
Publication Date: 2020-12-09
Number: 20-47