Iceberg transport costs are one of the main ingredients of modern trade and economic geography models: transport costs are modelled by assuming that a fraction of the goods shipped "melts in transit". In this paper, we investigate whether the iceberg assumption applies to the costs of...

China's Hukou system poses severe restrictions on labor mobility. This paper assesses the consequences of relaxing these restrictions for China's internal economic geography. We base our analysis on a new economic geography model. First, we obtain estimates of the important model parameters on...

China has used two main spatial policies to shape its geographic patterns of development: restricted labor mobility through the Hukou residential registration system and massive infrastructure investment, notably a 96,000 kilometer national expressway network. This paper develops a structural...