Agglomeration and Trade Revisited

Gianmarco Ottaviano and Jacques Thisse

No 1903, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The purpose of this paper is two-fold. First, we present a model of agglomeration and trade that displays the main features of the recent economic geography literature, while allowing for the derivation of analytical results by means of simple algebra. Second, we show how this framework can be used to tackle the following important issues: (i) the impact on agglomeration of alternative pricing policies used in the space-economy, with a special focus on the distinction between segmented and integrated markets; (ii) a forward-looking approach to the dynamics of migration in the process of agglomeration, instead of the simple Marshallian model used so far in the economic geography literature.

Keywords: Agglomeration; Monopolistic Competition; spatial price policy; Trade (search for similar items in EconPapers)
JEL-codes: F12 L13 R13 (search for similar items in EconPapers)
Date: 1998-06
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Citations: View citations in EconPapers (18)

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Related works:
Chapter: AGGLOMERATION AND TRADE REVISITED (2021)
Journal Article: Agglomeration and Trade Revisited (2002)
Working Paper: Agglomeration and trade revisited (2002)
Working Paper: Agglomeration and trade revisited (1999)
Working Paper: Agglomeration and Trade Revisited (1999)
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