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Spatial Structural Change
June 23, 2025
MINNEAPOLIS, Minnesota, June 23 -- The Federal Reserve Bank of Minneapolis issued the following analysis:

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Spatial Structural Change

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Abstract

We develop a quantitative theory of spatial structural change in which economic growth, sectoral reallocation, and regional development are jointly determined in equilibrium. We show that sectoral reallocation inherently disadvantages regions specialized in the declining sector. Yet . . .

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