New Economic Geography and the City

  • Carl Gaigné
  • Jacques-François ThisseEmail author
Living reference work entry


In this chapter, we provide a bird-eye overview of recent developments in NEG within a unifying framework. We build on the idea that the difference in the economic performance of regions depend on the global and local interactions between and within regions through the locational decisions made by firms and households at the macro and microspatial levels. We also focus on settings that take into account the urban structure, the social and skill composition and the sectorial specialization of regional agglomerations, and the quality of urban life.

Three types of spatial frictions are considered, that is, transport costs, commuting costs, and communication costs.


Agglomeration City Communication cost Commuting cost Economic geography Land Trade Transportation cost 



We thank P. Asadi, J. Cavailhes, M. Fujita, T. Gokan, S. Kichko, F. Moizeau, S. Riou, and T. Tabuchi for comments and discussions. This work is supported by the Russian Science Foundation (Project No. 18-18-00253).


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.INRA, UMR1302, SMART-LERECORennesFrance
  2. 2.CREATE, Laval UniversityQCCanada
  3. 3.CORE, Université catholique de Louvain and CEPRLouvain-la-NeuveBelgium
  4. 4.CMSSEHSE UniversitySaint-PetersburgRussia

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