We address the fundamental question arising in economic geography: why do economic activities agglomerate in a small number of places? The main reasons for the formation of economic clusters involving firms and/or households are analysed: (i) externalities under perfect competition; (ii)...

Canonical analysis of the classical general equilibrium model demonstrates the existence of an open and dense subset of standard economies that possess fully-revealing rational expectations equilibria. This paper shows that the analogous result is not true in urban economies under appropriate...

The aim of this paper is to explore the structure of cities as a function of labor differentiation, gains to trade, a fixed cost for constructing the transportation network, a variable cost of commodity transport, and the commuting costs of consumers. Firms use different types of labor to...

This paper explores the formation of cities through labour specialization, gains to trade, a fixed cost for the transportation network, imperfect competition between firms, and the commuting costs of consumers. The model uses a very general setting, allowing a multidimensional location space and...

Cities are often viewed as places fostering employment. It is shown that the choice of a particular location within a city is a key factor for the creation of jobs by a new firm. This question is addressed in the context of a standard urban model in which existing firms are established at the...

The article analyzes the regional differences in Bulgaria, compared with those in other EU member countries. It studies the premises determining the changes in the economic structure of the regions in Bulgaria. It visions the structural changes (at regional level), which would favor the economic...

The paper supports the understanding that accepting one or another theoretical formulation about the convergence processes feel deeply about the formation of the EU regional policy, respectively for its effectiveness. The relation between the economic development and the convergence within the...

The EU enlargement and the new challenges related with the integration processes raise the necessity of EU regional policy reconsidering. The paper supports the understanding that accepting one or another theoretical formulation about the convergence processes feel deeply about the formation of...

This paper outlines the effect regional differences have on economic development in national and regional aspect. A comparison of the current regional processes in this country to those of the rest of the pre-accession countries is offered. Some common as well as specific characteristics of...