Agglomeration and the Adjustment of the Spatial Economy

Combes, Pierre-Philippe; Duranton, Gilles; Overman, Henry G.

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Agglomeration and the Adjustment of the Spatial Economy

CEPR Discussion Paper No. 5028

47 Pages Posted: 12 Sep 2005

See all articles by Pierre-Philippe Combes

Pierre-Philippe Combes

Sciences Po - Department of Economics; Centre for Economic Policy Research (CEPR)

Gilles Duranton

London School of Economics & Political Science (LSE) - Department of Geography and Environment; Centre for Economic Policy Research (CEPR)

Henry G. Overman

London School of Economics (LSE) - Department of Geography and Environment; Centre for Economic Policy Research (CEPR)

Date Written: April 2005

Abstract

We consider the literatures on urban systems and New Economic Geography to examine questions concerning agglomeration and how areas respond to shocks to the economic environment. We first propose a diagrammatic framework to compare the two approaches. We then use this framework to study a number of extensions and to consider several policy relevant issues.

Keywords: Urban systems, new economic geography, urban and regional policy, diagrammatic exposition

JEL Classification: R00, R58

Suggested Citation: Suggested Citation

Combes, Pierre-Philippe and Duranton, Gilles and Overman, Henry G., Agglomeration and the Adjustment of the Spatial Economy (April 2005). CEPR Discussion Paper No. 5028, Available at SSRN: https://ssrn.com/abstract=772909