1. Agglomeration; Part I. Fundamentals of Geographical Economics: 2. The breakdown of the price system in a spatial economy; 3. The von Thünen model and land rent formation; 4. Increasing returns vs. transportation costs: the fundamental tradeoff of a spatial economy; 5. Cities and the public sector; Part II. The Structure of Metropolitan Areas: 6. The spatial structure of cities under communication externalities; 7. The formation of urban centers under imperfect competition; Part III. Factor Mobility and Industrial Location: 8. Industrial agglomeration under Marshallian externalities; 9. Industrial agglomeration under monopolistic competition; Part IV. Urban Systems and Regional Growth: 10. Back to von Thünen: the formation of cities in a spatial economy; 11. On the relationship between agglomeration and growth.
This book explains the economic rationale for the clustering of firms and households.
'This is a wonderfully informative book on spatial economics, by two of the best people in the field. I learned a lot that I didn't know, and so will you. Better than any book so far, this integrates concepts that range from 'edge cities' to global divergence into a single grand view.' Paul Krugman, Princeton University 'This new monograph by Masahisa Fujita and Jacques-Francois Thisse is a comprehensive survey of spatial economics, taking the reader all the way from von Thunen to the current research with clarity and rigor.' Robert Lucas, University of Chicago 'As I started reading this book, I asked myself whether it was going to be the key reference in spatial economics for many years to come. After completing my reading, I am confident the answer is a resounding yes. This is a book of enormous merits.' Giles Duranton, Urban Studies
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