DP5028 | Agglomeration and the Adjustment of the Spatial Economy

Publication Date

23/04/2005

JEL Code(s)

  • R00, R58

Keyword(s)

  • Urban systems, new economic geography, Urban and regional policy, Diagrammatic exposition

Programme Area(s)

  • International Trade and Regional Economics

Abstract

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.