The paper examines the impact of communication cost reductions on growth and welfare by means of an endogenous spatial growth model. Policy makers having to decide upon transport policies often claim certain policies such as infrastructure investments to have growth stimulating effects that...

The paper examines the impact of communication-cost reductions on growth and welfare by means of an endogenous spatial growth model. Policy makers favouring certain infrastructure investments often claim that such projects have growth-stimulating effects that generate ‘wider impacts’ in...

This paper estimates welfare effects resulting from reduced transaction costs in international trade, using a static multiregional general equilibrium model. The kernel of the model is the trade part specified in Dixit-Stiglitz-style. Interregional trade shows a gravity pattern due to...