New Economic Geography and the City
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New economic geography (NEG) has proven to be very useful in dealing with a large number of issues. Yet, in this paper we do not discuss the canonical NEG models and their vast number of extensions. Rather, we provide an overview of recent developments in the NEG literature that build on the idea that the difference in the economic performance of regions is explained by the behavior and interactions between households and firms located within them. This means that we consider NEG models which take into account land markets, thereby the internal structure and industrial mix of urban agglomerations.