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Foreword xiii
Acknowledgments xxiv
I Facts and Theories 1
1 Spatial Inequalities: A Brief Historical Overview 3
1.1 The Space-Economy and the Industrial Revolution 4
1.2 Regional Disparities: When an Ancient Phenomenon
Becomes Measurable 12
1.3 Concluding Remarks 25
2 Space in Economic Thought 26
2.1 Economics and Geography: A Puzzling History of
Reciprocal Ignorance 27
2.2 Integrating Space in Economics: The Main Attempts 30
2.3 The Burden of Modeling Constraints 31
2.4 The Breakdown of the Competitive Paradigm in a
Spatial Economy 35
2.5 What Are the Alternative Modeling Strategies? 41
2.6 Increasing Returns and Transport Costs:
The Basic Trade-Off of Economic Geography 43
2.7 Concluding Remarks 48
II Space, Trade, and Agglomeration 51
3 Monopolistic Competition 53
3.1 The Dixit–Stiglitz Approach 55
3.2 Monopolistic Competition: A Linear Setting 71
3.3 Concluding Remarks 79
3.4 Related Literature 80
4 Interregional Trade and Market Size 81
4.1 The Dixit–Stiglitz–Krugman Model of Trade 82
4.2 The Home-Market Effect 894.3 Concluding Remarks 98
4.4 Related Literature 100
5 Gravity and Trade Costs 101
5.1 The Gravity Model 103
5.2 Trade Costs 115
5.3 Concluding Remarks 127
5.4 Related Literature 127
6 The Core–Periphery Structure 130
6.1 Increasing Returns and Industrialization 133
6.2 Regional Disparities: The Krugman Model 137
6.3 The Krugman Model Revisited 160
6.4 Concluding Remarks 162
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