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<P>By Masahisa Fujita, Paul Krugman, Anthony J. Venables,</P>
<P>Publisher: The MIT Press<br>Number Of Pages: 366<br>Publication Date: 1999-07-02<br>Sales Rank: 939231<br>ISBN / ASIN: 0262062046<br>EAN: 9780262062046<br>Binding: Hardcover<br>Manufacturer: The MIT Press<br>Studio: The MIT Press<br>Average Rating: 5</P>
<P><br>Since 1990 there has been a renaissance of theoretical and empirical work on the spatial aspects of the economy--that is, where economic activity occurs and why. Using new tools--in particular, modeling techniques developed to analyze industrial organization, international trade, and economic growth--this "new economic geography" has emerged as one of the most exciting areas of contemporary economics.</P>
<P>The authors show how seemingly disparate models reflect a few basic themes, and in so doing they develop a common "grammar" for discussing a variety of issues. They show how a common approach that emphasizes the three-way interaction among increasing returns, transportation costs, and the movement of productive factors can be applied to a wide range of issues in urban, regional, and international economics. This book is the first to provide a sound and unified explanation of the existence of large economic agglomerations at various spatial scales.</P>
<P><br>Review:</P>
<P>A pretty good textbook with material not found elsewhere</P>
<P>If you are considering buying this book, you will probably want to do so. If you are interested in applying regional analysis or the "new" spatial economics that they present, you will have a good starting point. The necessary background is probably be a year of Ph.D. level economic theory. Specific high points are the exposition of the Dixit-Stiglitz model of monopolistic competition and the evolution of urban systems. All new Ph.D. students will have a use for chapter 4, which is an easy-to-read discussion of monopolistic competition. Further, the book is rigorous enough to be used in academic work. I recommend it to anyone interested in regional or urban economics. It is useful to students and practicing economists alike. Its rigor makes it academic, but its ease of exposition makes it useful for those without extraordinary math backgrounds. Compared to similar books, you get a lot of value for the price.</P>
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