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This project aims at constructing a comprehensive framework for policy
analysis of spatial issues from theoretical and empirical viewpoints. In
this framework, called a spatial equilibrium framework, we focus on the
need to rethink conventional findings on spatial resource allocation due
to the combination of various market failures -especially those of economies
of agglomeration- with several externalities.
Various economic factors interact in complex ways in spatial economies(Fig.1).
Therefore, no clear-cut single measure can be used to analyze them. Various
techniques developed in fields of spatial economics, industrial organization,
macroeconomics, and trade theory are therefore used for our analysis. We
will do our research in cooperation with researchers and specialists in
these fields.
Fig.1: An Example of Linkages between Markets through Externalities
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