DP5028 Agglomeration and the Adjustment of the Spatial Economy

Author(s): Pierre-Philippe Combes, Gilles Duranton, Henry G Overman
Publication Date: April 2005
Keyword(s): diagrammatic exposition, New Economic Geography, urban and regional policy, urban systems
JEL(s): R00, R58
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=5028

We consider the literatures on urban systems and New Economic Geography to examine questions concerning agglomeration and how areas respond to shocks to the economic environment. We first propose a diagrammatic framework to compare the two approaches. We then use this framework to study a number of extensions and to consider several policy relevant issues.