This book provides the first unifying treatment of the range of economic reasons for the clustering of firms and households. Its goal is to explain further the trade-off between various forms of increasing returns and different types of mobility costs. Although referring to agglomeration as a generic term is convenient, it should be noted that the concept of economic agglomeration refers to distinct real world situations. The main focus of the treatment is on cities, but it also explores the formation of agglomerations, such as commercial districts within cities, industrial clusters at the regional level, and the existence of imbalance between regions. The book is rooted within the realm of modern economics and borrows concepts from geography and regional science, which makes it accessible to a broad audience formed by economists, geographers, regional planners, and other scientists. It may be used in coursework for graduate students and upper-level undergraduates.

Winner of the 2004 William Alonso Memorial Prize for Innovative Work in Regional Science

‘This is a wonderfully informative book on spatial economics, by two of the best people in the field. I learned a lot that I didn't know, and so will you. Better than any book so far, this integrates concepts that range from ‘edge cities’ to global divergence into a single grand view.’

Paul Krugman - Princeton University

‘This new monograph by Masahisa Fujita and Jacques-Francois Thisse is a comprehensive survey of spatial economics, taking the reader all the way from von Thunen to the current research with clarity and rigor.’

Robert Lucas - University of Chicago

‘As I started reading this book, I asked myself whether it was going to be the key reference in spatial economics for many years to come. After completing my reading, I am confident the answer is a resounding yes. This is a book of enormous merits.’

Giles Duranton Source: Urban Studies