On economic geography in economic theory: increasing returns and pecuniary externalities
- 1 April 2001
- journal article
- Published by Oxford University Press (OUP) in Journal of Economic Geography
- Vol. 1 (2) , 153-179
- https://doi.org/10.1093/jeg/1.2.153
Abstract
Our objective is twofold. First, we show why there is a spatial question in economic theory – why a free competitive market is unable to cope with agglomeration and regional imbalance in the absence of market distortions. Second, using a new and simple model, we review what has been accomplished in economic theory during the 1990s when due allowance is given to increasing returns, while market structure is given by monopolistic competition.Keywords
All Related Versions
This publication has 0 references indexed in Scilit: