Grajeda, Mauricio Ramírez; Yactayo, Willy Cortez - In: Spatial Economic Analysis 5 (2010) 3, pp. 263-275
Abstract This paper incorporates taste heterogeneity, as a dispersion force, into Fujita et al.'s New Economic Geography model. By doing so, agglomeration of both firms and workers is the result of market and non-market interactions. We analyze the outcomes of the original model vis-à-vis the...