Using German district data we estimate the structural parameters of a new economic geography model as developed by Helpman (1998) and Hanson (1998, 2001a). The advantage of the Helpman-Hanson model is that it incorporates the fact that agglomeration of economic activity increases the prices of...

In explaining the uneven spatial distribution of economic activity, urban economics, and new economic geography (NEG) dominate recent research in economics. A main difference between these two approaches is that NEG stresses the role of spatial linkages whereas urban economics does not do so. We...

Spatial heterogeneity at the city level is crucial for explaining local inequality. This heterogeneity will continue from a cultural perspective, an age profile perspective, and a productivity perspective. The process of catching up to the technological leader is influenced by geographic...

type="main" <title type="main">ABSTRACT</title> <p>The financial crisis of 2008 not only started the Great Recession, but also set off fundamental changes in production processes, government fiscal practices, and housing. Technological progress has enabled firms to outsource and offshore parts of the production process,...</p>