Of hype and hyperbolas: introducing the new economic geography

J. Peter Neary

No 200019, Working Papers from School of Economics, University College Dublin

Abstract: I take the publication of The Spatial Economy by Fujita, Krugman and Venables as an opportunity to expound and assess the "new economic geography". I use a simple diagram to show how the basic model works; give a self-contained algebraic derivation of the main results; note some interesting extensions; comment on some weaknesses of the model, which make it less suitable than might at first appear for discussing issues of industrial structure; try to place the field in relation to "old" economic geography and to the theory of international trade; and discuss its empirical and policy implications.

Keywords: Agglomeration; Dixit-Stiglitz preferences; Economic geography; Increasing returns to scale; Pecuniary externalities; Economic geography; Industrial organization (Economic theory); Dependency--Econometric models (search for similar items in EconPapers)
JEL-codes: F12 R10 (search for similar items in EconPapers)
Date: 2000-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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http://hdl.handle.net/10197/1315 First version, 2000 (application/pdf)

Related works:
Journal Article: Of Hype and Hyperbolas: Introducing the New Economic Geography (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:wpaper:200019

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