The standard approach to studying industrial agglomeration is to construct summary measures of the degree of agglomerationʺ within each industry and to test for significant agglomeration with respect to some appropriate reference measures. But such summary measures often fail to distinguish...

The spatial structure of transport networks is subject to increasing returns in transportation, distance, and density economies. Transport costs between locations are thus, in general, endogenous, and are determined by the interaction between the spatial distribution of transport demand and...

This paper develops a micro-simulation framework for multinational entry and sales activities across countries. The model is based on Eaton, Kortum, and Kramarzs (2010) quantitative trade model adapted towards multinational production. Using micro data on Japanese manufacturing firms, we...

In order to examine the impacts of market size on entrepreneurship, we estimate a monopolistic competition model that involves the workers' decisions to pursue entrepreneurship by using data on Japanese prefectures. Our results show that a larger market size in terms of population density leads...

Numerous studies have indicated that densely populated cities enhance the productivity of workers through knowledge spillover and superior matching with employers in the labor market. This paper quantitatively analyzes the relationship among urban density, human capital, and wages by using micro...

In this paper, I explain Thünens pioneering work on industrial agglomeration. In my opinion, Thünens thinking on industrial agglomeration was not only amazingly advanced for his time, but in many respects remains novel even today. It is shown that if we unify Thünens well-known theory on...