New Economic Geography and the City

45 Pages Posted: 9 Apr 2019 Last revised: 16 Apr 2019

See all articles by Carl Gaigne

Carl Gaigne

French National Institute for Agricultural Research (INRA) - UMR 1302 SMART

Jacques-François Thisse

Catholic University of Louvain (UCL); Centre for Economic Policy Research (CEPR)

Date Written: April 2019

Abstract

In this chapter, we provide a bird-eye overview of recent developments in NEG within a unifying framework. We build on the idea that the difference in the economic performance of regions depend on the global and local interactions between and within regions through the locational decisions made by firms and households at the macro and microspatial levels. We also focus on settings that take into account the urban structure, the social and skill composition and the sectorial specialization of regional agglomerations, and the quality of urban life. Three types of spatial frictions are considered, that is, transport costs, commuting costs, and communication costs.

Keywords: cities, Communication costs, Commuting costs, Land rent, manufacturing goods, new economic geography, Services, transport costs

JEL Classification: L12, O14, R12

Suggested Citation

Gaigne, Carl and Thisse, Jacques-François, New Economic Geography and the City (April 2019). CEPR Discussion Paper No. DP13638. Available at SSRN: https://ssrn.com/abstract=3368135

Carl Gaigne (Contact Author)

French National Institute for Agricultural Research (INRA) - UMR 1302 SMART ( email )

4 allée Adolphe Bobierre
CS 61103
Rennes Cedex, 35011
France

Jacques-François Thisse

Catholic University of Louvain (UCL) ( email )

Place des Doyens 1
Louvain-la-Neuve, 1348
Belgium

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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