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Agglomeration and the Adjustment of the Spatial Economy

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  • Pierre-Philippe Combes
  • Gilles Duranton
  • Henry Overman

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.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0689.

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Date of creation: May 2005
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Handle: RePEc:cep:cepdps:dp0689

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Keywords: Urban systems; New Economic Geography; Urban and regional policy; diagrammatic exposition;

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  1. Gilles Duranton & Diego Puga, . "DIVERSITY AND SPECIALISATION IN CITIES. Why, where and when does it matter?," UFAE and IAE Working Papers 443.99, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
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  7. J.V. Henderson & A.J. Venables, 2006. "The Dynamics of City Formation: Finance and Governance," 2006 Meeting Papers 224, Society for Economic Dynamics.
  8. OTTAVIANO, Gianmarco & THISSE, Jacques-François, 1999. "Agglomeration and trade revisited," CORE Discussion Papers 1999041, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Puga, Diego, 1997. "The Rise and Fall of Regional Inequalities," CEPR Discussion Papers 1575, C.E.P.R. Discussion Papers.
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  12. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  13. Abdel-Rahman, Hesham M. & Wang, Ping, 1997. "Social Welfare and Income Inequality in a System of Cities," Journal of Urban Economics, Elsevier, vol. 41(3), pages 462-483, May.
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  18. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2008. "Spatial wage disparities: Sorting matters!," Journal of Urban Economics, Elsevier, vol. 63(2), pages 723-742, March.
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  22. Tabuchi, Takatoshi, 1998. "Urban Agglomeration and Dispersion: A Synthesis of Alonso and Krugman," Journal of Urban Economics, Elsevier, vol. 44(3), pages 333-351, November.
  23. Peri, Giovanni, 2002. "Young workers, learning, and agglomerations," Journal of Urban Economics, Elsevier, vol. 52(3), pages 582-607, November.
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