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Paper No' CEPDP0441: | Full paper
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Keywords: Distribution dynamics; economic geography; internet; location; space; time; Toepitz; weightless economy
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This Paper is published under the following series: CEP Discussion Papers
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Abstract:Internet development holds the promise of transmitting economic value across physical space at zero marginal cost. In such a ''weightless economy'', what factors matter for the location of economic activity and thus for economic development? This paper sketches a model of spatial dynamics over a three-dimensional globe, where transportation costs don''t matter. The paper develops conditions under which clusters of activity emerge.
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