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Journal of Economic Literature: Vol. 39 No. 2 (June 2001)

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Of Hype and Hyperbolas: Introducing the New Economic Geography

Article Citation

Neary, JPeter. 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography." Journal of Economic Literature, 39(2): 536-561.

DOI: 10.1257/jel.39.2.536

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."

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Neary, J.Peter (U College Dublin and CEPR)

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R12: Size and Spatial Distributions of Regional Economic Activity


Journal of Economic Literature


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