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New Economic Geography Explanations of Urban and Regional Agglomeration

Authors
Publisher
Elsevier Science & Technology
Publication Date
Identifiers
DOI: 10.1016/s0573-8555(04)66018-4
Keywords
  • Agglomeration Economies
Disciplines
  • Economics

Abstract

Abstract The purpose of this chapter is to examine the ‘new economic geography’ (NEG) in terms of how well it explains urban and regional agglomeration. The chapter reviews Krugman's core–periphery model of regional agglomeration with an eye toward what motivates the analysis and how the model accomplishes its ends. It then proceeds to an examination of how several other types of agglomeration, both urban and regional, can be modeled by modifying key assumptions. The chapter concludes with an assessment of what the NEG has accomplished and where its challenges lie, particularly in regard to empirical application.

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