Journal of Economic Literature Vol. 39 No. 2 2001
Of Hype and Hyperbolas: Introducing the New Economic Geography
Abstract
Reviewing The Spatial Economy by Fujita, Krugman, and Venables, this paper argues that the key contribution of the new economic geography is a framework in which standard building blocks of mainstream economics (especially rational decision making and simple general equilibrium models) are used to model the trade-off between dispersal and agglomeration. The approach thus gives a choice-theoretic basis for a “propensity to agglomerate.”
- DOI
- 10.1257/jel.39.2.536
- Volume
- 39
- Issue
- 2
- Pages
- 536-561
- Language
- en
- Sources
- openalex crossref