Of Hype and Hyperbolas: Introducing the New Economic Geography.

Journal article

Reviewing The Spatial Economy by Fujita, Krugman, and Venables, this paper argues that the key contribution of the new economic geography is a framework in which standard building blocks of mainstream economics (especially rational decision making and simple general equilibrium models) are used to model the trade-off between dispersal and agglomeration. The approach thus gives a choice-theoretic basis for a "propensity to agglomerate."

Authors: Neary, J

• Journal: Journal of Economic Literature
• Volume: 39
• Publication date: 2001-01-01
• ISSN: 0022-0515
• Language: English