One of the most notable features of literature about "new economic geography" is a close association between theoretical and empirical work. In contrast to earlier research, theoretical studies are often much more strongly focused on real-world phenomena. At the same time, empirical work is...

This volume was prepared by Erik Hornung while he was working in the Department Human Capital and Innovation of the Ifo Institute. It was completed in December 2012 and accepted as a doctoral thesis by the Economics Department of the University of Munich (LMU). The thesis consists of four core...