This paper depicts an industrial district as a center of innovation and production in a sector characterized by horizontal product differentiation. Local technological externalities sustain the endogenous invention of new varieties by profit-seeking firms.

This paper tackles the issue of the optimality of agglomeration in a two-region economy with skilled/mobile and unskilled/immobile workers. The market leads to the optimal outcome when transport costs are high or low. However, for intermediate values, it yields agglomeration whereas dispersion...

This paper tackles the issue of optimum product diversity in an impoerfeclty competitive market with small or large firms. First, it develops a quadratic utility model of monopolistic competition with horizontal product differentiation which avoids some of the main pitfalls of the S-D-S...

The paper uses a spatial model of endogenous growth to investigate the likely impact of discriminatory integration among two advanced countries on their own welfare as well as on the welfare of an outsider transition economy.

This paper discusses the intellectual origins of the so-called 'new economic geography' and provides its basic insights by means of a streamlined framework which stresses the generality of their implications.