Of Hype and Hyperbolas: Introducing the New Economic Geography
- (pp. 536-561)
AbstractReviewing 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."
Citation2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography." Journal of Economic Literature, 39(2): 536-561. DOI: 10.1257/jel.39.2.536
- R12 Size and Spatial Distributions of Regional Economic Activity