This article introduces a social planner version of a model central to the New Economic Geography for explicitly answering whether the symmetric equilibrium outcome of the decentralized market economy is socially desirable. We find that savings incentives are too weak, resulting in an...

The paper analyzes modern principles of regional policy and whether they are applicable to the Russian economy. We consider, on the one hand, the principles of the World Bank policy based on a spatially neutral approach to choosing measures of regional policy, and, on the other hand, the EU...