The last one and a half centuries have witnessed dramatic changes in the world economy. The service (tertiary) sector, which at the beginning of the 20th century was of little importance relative to agriculture and manufacturing, has become the dominant sector today, accounting for 80% and more...

New economic geography focuses on the impact of falling transport costs on the spatial distribution of activities. However, it disregards the role of technological innovations, which are central to modern economic growth, as well as the role of migration costs, which are a strong impediment to...

We combine spatial and monopolistic competition to study market interactions between downtown retailers and an outlying shopping mall. Consumers shop at either marketplace or at both, and buy each variety in volume. The market solution stems from the interplay between the market expansion...

We propose a general model of monopolistic competition, which encompasses existing models while being flexible enough to take into account new demand and competition features. Using the concept of Frechet differentiability, we determine a general demand system. The basic tool we use to study the...

Combining a spatial equilibrium model with a search-matching unemployment model, this paper analyzes the willingness to pay for regional amenities and the regional quality of life when wages, rents, and unemployment risk compensate for local amenities and disamenities. The results are compared...

This article focuses on the location decision of firms when competing in a duopoly. Using a spatial Cournot setting, we evaluate what is the optimal location decision of both firms in the linear city. Our original contribution is that firms are dependent on a natural resource input to be able to...

After the price liberalization in 1991, the Russian economy was faced with a jump of costs of transportation in real terms. New Economic Geography (NEG) gives answers to questions that are related to changes in transport costs. However, the outcomes of NEG models are very sensitive with respect...

The aim of the study is to compare the methodology of spatial model building of two very influential economists, Thünen and Krugman. Thünen is a representative nineteen century economist and Krugman represents the method of contemporary neoclassical mainstream economics. Thünen is mostly...

In this paper we employ parametric and nonparametric techniques to analyse the effect of the changes registered on regional market potential on the growth of Spanish regions during the period 1860-1930. The study of the Spanish experience during these years conforms a case study that allows...