Of Hype and Hyperbolas: Introducing the New Economic Geography
Neary, JPeter. 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography."
Journal of Economic Literature,
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)
R12: Size and Spatial Distributions of Regional Economic Activity