Citation

Discussion Paper Details

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Title: Agglomeration and Trade Revisited

Author(s): Gianmarco Ottaviano and Jacques-François Thisse

Publication Date: June 1998

Keyword(s): Agglomeration, Monopolistic Competition, spatial price policy and Trade

Programme Area(s): Industrial Organization and International Trade and Regional Economics

Abstract: The purpose of this paper is two-fold. First, we present a model of agglomeration and trade that displays the main features of the recent economic geography literature, while allowing for the derivation of analytical results by means of simple algebra. Second, we show how this framework can be used to tackle the following important issues: (i) the impact on agglomeration of alternative pricing policies used in the space-economy, with a special focus on the distinction between segmented and integrated markets; (ii) a forward-looking approach to the dynamics of migration in the process of agglomeration, instead of the simple Marshallian model used so far in the economic geography literature.

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Bibliographic Reference

Ottaviano, G and Thisse, J. 1998. 'Agglomeration and Trade Revisited'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1903