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Bones, Bombs, and Break Points: The Geography of Economic Activity

Resource type
Authors/contributors
Title
Bones, Bombs, and Break Points: The Geography of Economic Activity
Abstract
We consider the distribution of economic activity within a country in light of three leading theories—increasing returns, random growth, and locational fundamentals. To do so, we examine the distribution of regional population in Japan from the Stone Age to the modern era. We also consider the Allied bombing of Japanese cities in WWII as a shock to relative city sizes. Our results support a hybrid theory in which locational fundamentals establish the spatial pattern of relative regional densities, but increasing returns help to determine the degree of spatial differentiation. Long-run city size is robust even to large temporary shocks.
Publication
American Economic Review
Volume
92
Issue
5
Pages
1269-1289
Date
2002-12
Citation
Davis, D. R., & Weinstein, D. E. (2002). Bones, Bombs, and Break Points: The Geography of Economic Activity. American Economic Review, 92, 1269–1289.
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