This special issue contains papers by both economists and geographers on agglomeration and growth. In this introduction, we first provide a brief sketch of recent developments in the interaction between economists and geographers. We then propose some contextual background to make it easier for...

While transport costs have fallen, the empirical evidence also points at rising total trade costs. In a model of industry location with endogenous transaction costs, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade.

While transport costs have fallen, the empirical evidence also points at rising total trade costs. In a model of industry location with endogenous transaction costs, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade.

This special issue contains papers by both economists and geographers on agglomeration and growth. In this introduction, we first provide a brief sketch of recent developments in the interaction between economists and geographers. We then propose some contextual background to make it easier for...

While transport costs have fallen, the empirical evidence also points at rising total trade costs. In a model of industry location with endogenous transaction costs, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade.

costs. In a model of industry location with endogenous transaction costs that seeks to replicate features from the machinery industry, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade. The subtle relationship between...