Most models of regional agglomeration are based on the new economic geography (NEG)
model in which returns to scale are pecuniary. We investigate the implications for regional …

The division of labor between and within countries is driven by two fundamental forces,
comparative advantage and increasing returns. We set up a simple Ricardian model with a …

This paper contributes to the theoretical research exploring the interface between
comparative advantage (locational fundamentals) and agglomeration economies. A simple …

There are sizeable and persistent per-capita income gaps across states and even across the
regions of a rich integrated area such as the EU. With regard to regional inequality, one of …

Why do economic activities cluster into cities? This is one of the most interesting and
important questions in urban economics. In Economics of Agglomeration: Cities, Industrial …

The most salient feature of the spatial economy is the presence of a large variety of
economic agglomerations. Our purpose is to review some of the main explanations for this …

We present a model of industrial location and endogenous growth with congestion costs.
According to the interplay between knowledge spillovers and commuting costs, we are able …

In recent empirical literature on spatial agglomeration, many papers find evidence consistent
with location‐specific externalities of some sort. Our willingness to accept evidence of …

In this chapter we investigate the relationship between the size of an area and the extent of
its industrial specialization. Much recent literature in regional economics and new economic …

Urban agglomerations arise at least in part out of the interaction between economies of
scale in production and market size effects. This paper develops a simple spatial framework …