Chapter 58

Agglomeration and Economic Geography

Gianmarco Ottaviano 1ottavian@economia.unibo.it     Università di Bologna, Italy. Università di Bologna. Italy

Jacques-François Thisse 2thisse@core.ucl.ac.be     CORE, Université catholique de Louvain, Belgium.

CERAS, École nationale des ponts et chaussées, France.

JEL classification: F12, F16, R12

Abstract

Peaks and troughs in the spatial distributions of population, employment and wealth are a universal phenomenon in search of a general theory. Such spatial imbalances have two possible explanations. In the first one, uneven economic development can be seen as the result of the uneven distribution of natural resources. This is sometimes called ‘first nature’ and refers to exogenously given ...

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