complex, since they feature demand-linked and cost-linked agglomeration forces. The paper presents a simpler model, where … agglomeration stems from demand-linked forces arising from endogenous capital with forward-looking agents. The model’s simplicity … permits many analytic results (rare in economic geography). Trade-cost levels that trigger catastrophic agglomeration are …

This Paper considers tax competition and tax harmonization in the presence of agglomeration forces and falling trade …

analysis. A ‘selection effect’ means standard empirical measures overestimate agglomeration economies. A ‘sorting effect’ means …

intersectoral) is the key to agglomeration, but migrants base their decision on current wage differences alone--even though …. Agglomeration, therefore, can be a self-fulfilling prophecy. …

shows that inter-regional learning spillovers are a stabilizing force. Finally, the paper shows that agglomeration of …

We review the theoretical links between growth and agglomeration. Growth, in the form of innovation, can be at the … origin of catastrophic spatial agglomeration in a cumulative process à la Myrdal. One of the surprising features of the … could lead to catastrophic agglomeration. The growth analog to this result is that the introduction of endogenous growth in …

We model international tax competition allowing for agglomeration forces and heterogeneous firms. This provides a new …