The Spatial Economy: Cities, Regions, and International Trade / Edition 1

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Since 1990 there has been a renaissance of theoretical and empirical work on the spatial aspects of the economy—that is, where economic activity occurs and why. Using new tools—in particular, modeling techniques developed to analyze industrial organization, international trade, and economic growth—this "new economic geography" has emerged as one of the most exciting areas of contemporary economics.The authors show how seemingly disparate models reflect a few basic themes, and in so doing they develop a common "grammar" for discussing a variety of issues. They show how a common approach that emphasizes the three-way interaction among increasing returns, transportation costs, and the movement of productive factors can be applied to a wide range of issues in urban, regional, and international economics. This book is the first to provide a sound and unified explanation of the existence of large economic agglomerations at various spatial scales.

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What People Are Saying

From the Publisher

"A superb volume on the new economics of geography by three pioneersin the field. This lucid, elegant book is a must for any graduatecourse in urban economics." Edward L. Glaeser, Professor of Economics, Harvard University

The MIT Press

Edward L. Glaeser
A superb volume on the new economics of geography by three pioneersin the field. This lucid, elegant book is a must for any graduatecourse in urban economics.
Donald R. Davis
Fujita, Krugman, and Venables provide a brilliant and lucid survey of the new economy geography. In strictly positive terms, the work is an even more radical departure from orthodoxy than the new trade theory of the 1980s. The Spatial Economy is absolutely essential reading for serious students and scholars in international trade, regional, and urban economics.
Richard E. Baldwin
This book provides an excellent and accessible analysis of an important new literature, the so-called New Economic Geography. It is written by exactly the right people and comes out at an opportune moment.
Elhanan Helpman
Monopolistic competition has revolutionized our thinking about a wide variety of economic topics, and it has established a firm foothold in macroeconomics. This splendid book shows how a number of common themes that have emerged from this approach can be used to advance our understanding of economic geography, regional and urban economics, international trade and economic development. It represents applied theory at its very best.
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Product Details

  • ISBN-13: 9780262561471
  • Publisher: MIT Press
  • Publication date: 9/1/2001
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 381
  • Product dimensions: 6.00 (w) x 9.00 (h) x 1.00 (d)

Meet the Author

Masahisa Fujita is Professor of Economics at the Kyoto Institute of Economic Research, Kyoto University.

Paul Krugman is Professor of Economics and International Affairs at Princeton University and a New York Times columnist. He was awarded the Nobel Prize for Economics in 2008.

Anthony J. Venables is Professor of International Economics at the London School of Economics.

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Table of Contents

1 Introduction 1
I Some Intellectual Background 13
2 Antecedents I: Urban Economics 15
3 Antecedents II: Regional Science 25
II Labor Mobility and Regional Development 43
4 The Dixit-Stiglitz Model of Monopolistic Competition and Its Spatial Implications 45
5 Core and Periphery 61
6 Many Regions and Continuous Space 79
7 Agricultural Transport Costs 97
III The Urban System 117
8 Spatial Models of Urban Systems: A Heuristic Introduction 119
9 The Monocentric Economy 133
10 The Emergence of New Cities 151
11 Evolution of a Hierarchical Urban System 181
12 An Empirical Digression: The Sizes of Cities 215
13 Ports, Transportation Hubs, and City Location 227
IV International Trade 237
14 International Specialization 239
15 Economic Development and the Spread of Industry 263
16 Industrial Clustering 283
17 A Seamless World 309
18 External Trade and Internal Geography 329
19 The Way Forward 345
References 351
Index 357
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