This book provides the first unifying analysis of the range of economic reasons for the clustering of firms and households. Its goal is to explain further the trade-off between various forms of increasing returns and different types of mobility costs. The main focus of the analysis is on cities, but it also explores the formation of other agglomerations, such as commercial districts within cities, industrial clusters at the regional level, and the existence of imbalance between regions.
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.
Winner of the 2004 William Alonso Memorial Prize for Innovative Work in Regional Science
"The primary value of the book resides in its development of microeconomic spatial models … a rich and provocative source of ideas, hypotheses, rationales, and models to contemplate and upon which to build."
Annals of the Association of American Geographers