This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. Journal of Economic Literature
  4. June 2001
  5. Of Hype and Hyperbolas: Introducing the New Economic Geography

Journal of Economic Literature

ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)

Of Hype and Hyperbolas: Introducing the New Economic Geography

  • J.Peter Neary
Journal of Economic Literature
vol. 39, no. 2, June 2001
(pp. 536–561)
Download Full Text PDF

Abstract

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."

Citation

Neary, JPeter. 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography." Journal of Economic Literature, 39 (2): 536–561. DOI: 10.1257/jel.39.2.536

JEL Classification

  • R12 Size and Spatial Distributions of Regional Economic Activity