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New Economic Geography and the City

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  • Carl Gaigné
  • Jacques-François Thisse

Abstract

New economic geography (NEG) has proven to be very useful in dealing with a large number of issues. Yet, in this paper we do not discuss the canonical NEG models and their vast number of extensions. Rather, we provide an overview of recent developments in the NEG literature that build on the idea that the difference in the economic performance of regions is explained by the behavior and interactions between households and firms located within them. This means that we consider NEG models which take into account land markets, thereby the internal structure and industrial mix of urban agglomerations.

Suggested Citation

  • Carl Gaigné & Jacques-François Thisse, 2013. "New Economic Geography and the City," Working Papers SMART - LERECO 13-02, INRA UMR SMART-LERECO.
  • Handle: RePEc:rae:wpaper:201302
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    References listed on IDEAS

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    Cited by:

    1. Gaigné, Carl & Zenou, Yves, 2015. "Agglomeration, city size and crime," European Economic Review, Elsevier, vol. 80(C), pages 62-82.
    2. Christian Ghiglino & Antonella Nocco, 2017. "When Veblen meets Krugman: social network and city dynamics," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(2), pages 431-470, February.

    More about this item

    Keywords

    city size; city structure; firms location; households location;

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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