We revisit the rationale for place-based policies using a canonical urban framework with agglomeration spillovers. We derive six main lessons. First, the spatial allocation is inefficient even when spillover elasticities are constant across regions. Second, under constant and positive spillover...

The recent development of quantitative urban models provides a new set of tools for evaluating transport improvements. Conventional cost-benefit analyses are typically undertaken in partial equilibrium. In contrast, quantitative urban models characterize the spatial distribution of economic...

Environmental amenities play an important role in residential location decisions, which in turn affect the concentration of consumption and production activities. In this paper, I develop and estimate a spatial general equilibrium model to examine how environmental amenities affect the spatial...