On the revealed comparative advantages of Dutch cities

Davis and Dingel explain the distributions of skills, occupations, and sectors across cities. Their model predicts that larger cities will be relatively skill-abundant and specialize in skill-intensive activities. This relates the model to factor-driven comparative advantages. They also develop an elasticity test and pairwise comparison test for the spatial distributional implications of the model. What is not analyzed, however, is the associated structure of trade flows. This next step—the analysis of the structure of trade—is the main contribution of our article. We combine micro-economic da... Mehr ...