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Transaction Costs, Agglomeration Economies, and Industrial Location: A Comment
Author(s) -
DE VRIES PIET,
HOSPERS GERTJAN
Publication year - 2006
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/j.1468-2257.2006.00319.x
Subject(s) - economies of agglomeration , transaction cost , sketch , database transaction , perspective (graphical) , economics , space (punctuation) , point (geometry) , economic geography , homogeneity (statistics) , industrial organization , economy , microeconomics , computer science , mathematics , geometry , algorithm , artificial intelligence , machine learning , programming language , operating system
This article comments on a recent contribution by Wood and Parr to Growth and Change . Wood and Parr apply the institutional–economic approach to agglomeration issues. After a sketch of the conceptual background, the present article discusses some concepts introduced by Wood and Parr, such as “transaction space” and the alleged relationship between space homogeneity and transaction cost. This is followed by critical remarks from the very same institutional–economic point of view. In the article, the conclusion is drawn that some limitations should be taken into account when applying the institutional perspective to agglomeration economics.