Externalities, Economic Geography, And Spatial Econometrics: Conceptual And Modeling Developments

Abstract

On the assumption that it is sometimes necessary to take a step sideways to make progress, this article describes the author’s preferred spatial econometric modeling approach based around recent theory developed in the field of urban economics. This has many features in common with geographical economics but is seen as more amenable to the analysis of externalities and to the development of new, more realistic, economic geography theory.