Agglomeration and the adjustment of the spatial economy

Combes, P., Duranton, G. & Overman, H. G.ORCID logo (2005). Agglomeration and the adjustment of the spatial economy. (CEP Discussion Papers 689). London School of Economics and Political Science. Centre for Economic Performance.
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We consider the literatures on urban systems and New Economic Geography to examine questions concerning agglomeration and how areas respond to shocks to the economic environment. We first propose a diagrammatic framework to compare the two approaches. We then use this framework to study a number of extensions and to consider several policy relevant issues.

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