China’s Hukou system poses severe restrictions on labor mobility. This paper assesses the possible consequences of relaxing these restrictions for China’s internal economic geography. We base our analysis on a new economic geography (NEG) model. First, we estimate the important model...

In this paper we want to shed some light on the empirical relevance of the new economic geography. Using one of the central features of the core new economic geography models, namely that wages have the tendency to fall the further one moves away from centres of economic activity, we investigate...

In this paper we want to shed some light on the empirical relevance of the new economic geography. Using one of the central features of the core new economic geography models, namely that wages have the tendency to fall the further one moves away from centres of economic activity, we investigate...

With the completion of EMU, tax competition and, more in general, locational competition is high on the EU policy agenda. In contrast to the standard neo-classical reasoning, recent advances in the theory of trade and location have shown that tax competition does not necessarily lead to a race...

In this paper we want to shed some light on the empirical relevance of the new economic geography. Using one of the central features of the core new economic geography models, namely that wages have the tendency to fall the further one moves away from centres of economic activity, we investigate...

"The purpose of our book is to offer an introduction to urban and geographical economics, the two dominant approaches in mainstream economics to explain the distribution of economic activity across space. The fact that we offer an 'introduction' does not mean that we avoid models or shy away...