Abstract:

CEP discussion paper
Agglomeration and the Adjustment of the Spatial Economy
Pierre-Philippe Combes, Gilles Duranton and Henry Overman
May 2005
Paper No' CEPDP0689:
Full Paper

JEL Classification: R00; R58

Tags: urban systems; new economic geography; urban and regional policy; diagrammatic exposition

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.