Towards a Multiregional NEG Framework: Comparing Alternative Modelling Strategies

Pasquale Commendatore, Valerio Filoso, Theresa Grafeneder-Weissteiner () and Ingrid Kubin ()
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Theresa Grafeneder-Weissteiner: University of Vienna

A chapter in Complexity and Geographical Economics, 2015, pp 13-50 from Springer

Abstract: Abstract This chapter reviews the New Economic Geography (NEG) models that explain the uneven distribution of economic activity across space employing endogenous agglomeration processes, and the interplay of agglomeration and dispersion forces. Unlike the two-region models that have a restricted applicability, this chapter focuses on the multiregional NEG models recently developed in the literature, reviews their contributions systematically and compares different modelling strategies. As unifying framework, we use the footloose entrepreneur model considering the role and nature of transport costs, and the welfare properties of the spatial equilibria and the design of optimal economic policies.

Keywords: Transport Cost; Trade Cost; Social Planner; Symmetric Equilibrium; Indirect Utility (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:dymchp:978-3-319-12805-4_2

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DOI: 10.1007/978-3-319-12805-4_2

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