Of hype and hyperbolas: introducing the new economic geography

By J. P. Neary, M. Amiti, Richard E. Baldwin, S. Brakman, Frédéric Robert-Nicoud, Gianmarco I. P. Ottaviano, Jacques-François Thisse, Tony Venables. 2001

569 citations recorded by the source corpus.

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."

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/241d082e51816e8bddba642a9a936716f87daa7a

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

Agglomeration and economic geography (2003, unknown): “In ( 51 ), υ expresses the dispersion of individual tastes: the larger υ, the more heterogenous the workers’ tastes about their living place.”
The Economic Geography of Trade Production and Income: A Survey of Empirics (2001, background): “Roback (1982) and Kahn (1995) emphasize the relationship between local amenities and wages and land rents within cities.”
Urbanization and Growth (2005, background): “Excellent summaries of the key elements include Neary (2001), Fujita and Thisse (2000) and Ottaviano and Thisse (2004), with the latter two developing many extensions.”
Adding geography to the new economic geography : bridging the gap between theory and empirics (2010, background): “These predictions are, however, typically based on models that treat geography in a very simple way (see also Neary, 2001, p.551 ).”
Rebalancing the Spatial Economy: The Challenge for Regional Theory (2015, background): “…types of increasing returns effects and positive externalities that arise from the spatial agglomeration of firms and workers.9 There is in fact an in-built bias towards regional agglomeration and spatial economic imbalance in NEG models (MARTIN, 1999; NEARY, 2001; GARRETSEN and MARTIN, 2010).”
Does spatial agglomeration increase national growth? some evidence from Europe (2011, background): “One of the criticisms of the first generation of NEG models was that they contained little discussion or analysis of the role or impact of policy (Martin, 1999; Neary, 2001).”
INDONESIA'S CHANGING ECONOMIC GEOGRAPHY (2008, background): “Traditionally regarded as inhabiting the backwaters of the profession, ‘new economic geography has come of age’ in the words of Neary (2001) .”
A Simple, Analytically Solvable Chamberlinian Agglomeration Model (2004, unknown): “At a certain level of 1 The core-periphery model is conveniently laid out in Fujita et. al (1999, Ch. 4 and Ch. 5) and elaborated on and critically assessed in Neary (2001) and Baldwin et.al.”
International fragmentation and the new economic geography (2005, background): “In a recent magisterial survey, Peter Neary (2001) remarked that, “Economic Geography has come of age.”
A Search for Multiple Equilibria in Urban Industrial Structure (2008, unknown): “In addition to the city population data of the first paper, we consider data on aggregate city 1995; Anas, Arnott, and Small 1998; and Neary, 2001).”