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|
|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.