This paper presents an overview of recent development in the new economic geography (NEG), and discusses possible directions of its future development. Since there already exist several surveys on this topic, we focus on the selected features of the NEG which are important yet have attracted...

This paper analyzes the effect of skill heterogeneity on regional patterns of production and housing in the presence of pecuniary externalities within a general-equilibrium framework, assuming monopolistic competition in intermediate goods markets. It shows that the interplay of heterogeneous...

We show in the framework of a new economic geography model that when labor is heterogenous and productivity depends on the quality of the match between job and worker, trade liberalization may lead to industrial agglomeration and inter-industry trade. The agglomeration force is the improvement...

We show in the context of a new economic geography model that when labor is heterogenous trade liberalization may lead to industrial agglomeration and inter-regional trade. Labor heterogeneity gives local monopoly power to firms but also introduces variations in the quality of the job match....

the main framework is based on the two good--two country--three region Ricardian Model, including migration. We manifest that, even if the technology is improved in the foreign country at a moderate level so as not to exceed the technology in one advanced region in the home country and so as to...

We investigate an economic geography model in which agricultural goods are costly to transport and in which manufactures hire labor from the local agricultural sector as unskilled labor. We show that agricultural transport costs and local-unskilled labor requirements in firms act as a dispersion...

The notion of "polycentric city system" is currently receiving growing attention as a basic element of the "European Spatial Policy". From this perspective, both agglomeration and economic integration have to be reinterpreted on a wider geographical scale. This is of interest of the s.c....

This Paper studies the theoretical micro-foundations of urban agglomeration economies. We distinguish three types of micro-foundations, based on sharing, matching, and learning mechanisms. For each of these three categories, we develop one or more core models in detail and discuss the literature...

We show in the framework of a new economic geography model that when labour is heterogenous and productivity depends on the quality of the match between job and worker, trade liberalization may lead to industrial agglomeration and inter-industry trade. The agglomeration force is the improvement...

This paper shows that the evolutionary process of spatial agglomeration in multi-regional core-periphery models can be explained analytically by a much simpler method than the continuous space approach of Krugman (1996). The proposed method overcomes the limitations of Turing's approach which...