simple, analytically solvable 'new economic geography' model with two trade integrating regions. The location pattern … emerging as market equilibrium is bubbleshapedʺ, i.e. it features dispersion of firms both at high and low trade costs and … trade costs. Our central finding is that the market equilibrium is characterised by over-agglomeration for high trade costs …

Environmental Kuznets Curve. In particular, reducing trade costs increases per capita incomes and generates a U-shaped evolution of …

density on productivity but we also consider many other local determinants supported by theory. Empirical issues are then …

received no attention in the new trade theory and the new economic geography. We set up a simple monopolistic competition model … explain the agglomeration of economic activity observed in the real world. -- Trade and location ; land for production … labor, a number of tenets of the new trade and geography literature no longer hold. We also show that in order to explain …