Economic geography : the integration of regions and nations

424 Pages·2008·10.663 MB·English

by  Pierre-Philippe Combes, Thierry Mayer, Jacques-François Thisse

Economic Geography

Economic Geography
The Integration of Regions and Nations
Pierre-Philippe Combes
Thierry Mayer
Jacques-François Thisse
PrincetonUniversityPress
PrincetonandOxford
Copyright©2008byPrincetonUniversityPress
PublishedbyPrincetonUniversityPress,
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ISBN:978-0-691-12459-9(alk.paper)
LibraryofCongressControlNumber:2008930613
BritishLibraryCataloging-in-PublicationDataisavailable
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Printedonacid-freepaper ∞
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PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
To Emile, Anatole, Théo, Gaspar, Valérie, and Caroline

Theeconomy,all-invading,minglingtogethercurrencies
andcommodities,tendedtopromoteunityofakindin
aworldwhereeverythingelseseemedtobeconspiring
tocreateclearlydistinguishedblocs.
FernandBraudel,ThePerspectiveoftheWorld

Contents
Foreword xiii
Acknowledgments xxiv
I Facts and Theories 1
1 SpatialInequalities:ABriefHistoricalOverview 3
1.1 TheSpace-EconomyandtheIndustrialRevolution 4
1.2 Regional Disparities: When an Ancient Phenomenon
BecomesMeasurable 12
1.3 ConcludingRemarks 25
2 SpaceinEconomicThought 26
2.1 Economics and Geography: A Puzzling History of
ReciprocalIgnorance 27
2.2 IntegratingSpaceinEconomics:TheMainAttempts 30
2.3 TheBurdenofModelingConstraints 31
2.4 The Breakdown of the Competitive Paradigm in a
SpatialEconomy 35
2.5 WhatAretheAlternativeModelingStrategies? 41
2.6 Increasing Returns and Transport Costs:
TheBasicTrade-OffofEconomicGeography 43
2.7 ConcludingRemarks 48
II Space, Trade, and Agglomeration 51
3 MonopolisticCompetition 53
3.1 TheDixit–StiglitzApproach 55
3.2 MonopolisticCompetition:ALinearSetting 71
3.3 ConcludingRemarks 79
3.4 RelatedLiterature 80
4 InterregionalTradeandMarketSize 81
4.1 TheDixit–Stiglitz–KrugmanModelofTrade 82
4.2 TheHome-MarketEffect 89