This paper uncovers some little-known properties of the iceberg transport cost functions which are employed in some new economic geography models. In particular the behaviour of the delivered prices generated by the Krugman iceberg specification is very different to those generated by the...

This paper provides a critical examination of the widely disseminated view that innovation in all or most activities is favoured by certain common characteristics in the local 'milieu', involving a cluster of many small firms benefiting from flexible inter-firm alliances, supported by mutual...