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NCUEIR > College of Liberal Arts > Department of Geography > Books > Item 987654321/19997

Please use this identifier to cite or link to this item: http://ir.ncue.edu.tw/ir/handle/987654321/19997

Title:	New economic geography
Authors:	Chen C；Peng S-K 陳清目；彭坤信
Contributors:	地理系
Keywords:	agglomeration core–periphery dispersion trade costs increasing returns to scale technological externalities labor mobility monopolistic competition policy exercise quantitative spatial models
Date:	2020
Issue Date:	2021-09-08T05:39:45Z
Publisher:	Oxford University Press
Abstract:	For research attempting to investigate why economic activities are distributed unevenly across geographic space, new economic geography (NEG) provides a general equilibrium-based and microfounded approach to modeling a spatial economy characterized by a large variety of economic agglomerations. NEG emphasizes how agglomeration (centripetal) and dispersion (centrifugal) forces interact to generate observed spatial configurations and uneven distributions of economic activity. However, numerous economic geographers prefer to refer to the term new economic geographies as vigorous and diversified academic outputs that are inspired by the institutional-cultural turn of economic geography. Accordingly, the term geographical economics has been suggested as an alternative to NEG. Approaches for modeling a spatial economy through the use of a general equilibrium framework have not only rendered existing concepts amenable to empirical scrutiny and policy analysis but also drawn economic geography and location theories from the periphery to the center of mainstream economic theory. Reduced-form empirical studies have attempted to test certain implications of NEG. However, due to NEG’s simplified geographic settings, the developed NEG models cannot be easily applied to observed data. The recent development of quantitative spatial models based on the mechanisms formalized by previous NEG theories has been a breakthrough in building an empirically relevant framework for implementing counterfactual policy exercises. If quantitative spatial models can connect with observed data in an empirically meaningful manner, they can enable the decomposition of key theoretical mechanisms and afford specificity in the evaluation of the general equilibrium effects of policy interventions in particular settings. Several decades since its proposal, NEG has been criticized for its parsimonious assumptions about the economy across space and time. Therefore, existing challenges still require theoretical and quantitative models on new microfoundations pertaining to the interactions between economic agents across geographical space and the relationship between geography and economic development.
Relation:	Oxford Research Encyclopedia of Economics and Finance. DOI: https://doi.org/10.1093/acrefore/9780190625979.013.338
Appears in Collections:	[Department of Geography] Books

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