Economic Geography with Spatial Econometrics: a 'Third Way' to Analyse Economic Development and 'Equilibrium', with Application to the EU Regions
The main item of agreement between the 'new' and 'old' economic geography is the role of increasing returns in regional economic development. This provides a focal point for the model of this paper, which aims to highlight the existence of a 'third way' somewhere between the analysis provided by these two competing modes of explanation.
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