We empirically test the positive relationship between market access and wages stated by New Economic Geography. Contrary to most estimations in other countries, we find evidence of significant spatial heterogeneity of this elasticity across Chilean communities.

This article aims at estimating the implicit prices of housing characteristics and deriving spatial price indices using the hedonic approach. First, we consider the standard hedonic model alternating different functional forms. Then, we present a spatial model that accounts for the heterogeneity...