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New Economic Geography and the City

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  • Thisse, Jacques-François
  • Gaigné, Carl

Abstract

In this chapter, we provide a bird-eye overview of recent developments in NEG within a unifying framework. We build on the idea that the difference in the economic performance of regions depend on the global and local interactions between and within regions through the locational decisions made by firms and households at the macro and microspatial levels. We also focus on settings that take into account the urban structure, the social and skill composition and the sectorial specialization of regional agglomerations, and the quality of urban life. Three types of spatial frictions are considered, that is, transport costs, commuting costs, and communication costs.

Suggested Citation

  • Thisse, Jacques-François & Gaigné, Carl, 2019. "New Economic Geography and the City," CEPR Discussion Papers 13638, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:13638
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    Cited by:

    1. Takayama, Yuki & Ikeda, Kiyohiro & Thisse, Jacques-François, 2020. "Stability and sustainability of urban systems under commuting and transportation costs," Regional Science and Urban Economics, Elsevier, vol. 84(C).
    2. Gaigné, Carl & Zenou, Yves, 2015. "Agglomeration, city size and crime," European Economic Review, Elsevier, vol. 80(C), pages 62-82.
    3. Fabien Candau, 2011. "Is Agglomeration Desirable?," Annals of Economics and Statistics, GENES, issue 101-102, pages 203-227.
    4. Christian Ghiglino & Antonella Nocco, 2017. "When Veblen meets Krugman: social network and city dynamics," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(2), pages 431-470, February.

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    More about this item

    Keywords

    New economic geography; Cities; Transport costs; Commuting costs; Communication costs; Land rent; Manufacturing goods; Services;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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