Corpus ID: 52840988

The Geography of Path Dependence ∗

@inproceedings{Allen2018TheGO,
  title={The Geography of Path Dependence ∗},
  author={Treb Allen and D. Donaldson},
  year={2018}
}
How much of the distribution of economic activity today is determined by history rather than by geographic fundamentals? And if history matters, does it matter much? We develop an empirical framework that enables answers to these questions. Our model combines a workhorse model of trade subject to geographic frictions with features of local agglomeration externalities as well as an overlapping generations model of labor mobility also subject to spatial fractions. We derive parameter conditions… Expand
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