This chapter surveys recent developments in agglomeration theory within a unifying
framework. We highlight how locational fundamentals, agglomeration economies, the spatial …

Spatial inequality in developing countries is due to the natural advantages of some regions
relative to others and to the presence of agglomeration forces, leading to clustering of …

This handbook chapter studies the theoretical micro-foundations of urban agglomeration
economies. We distinguish three types of micro-foundations, based on sharing, matching …

Firms and workers are much more productive in large and dense urban environments. There
is substantial evidence of such agglomeration economies based on three approaches. First …

This paper develops microfoundations for the role that diversified cities play in fostering
innovation. A simple model of process innovation is proposed, where firms learn about their …

There is an extensive literature on the urbanization process looking at both urbanization and
urban concentration, asking whether and when there is under or over-urbanization or under …

Large cities produce more output per capita than small cities. This higher productivity may
occur because more talented individuals sort into large cities, because large cities select …

Why are some cities specialised and others diversified? What are the advantages and
disadvantages of urban specialisation and diversity? To what extent do the structure of cities …

In an economy experiencing endogenous economic growth and exogenous population
growth, we explore two main themes: how urbanization affects efficiency of the growth …

Striking evidence is presented of a previously unremarked transformation of urban structure
from mainly sectoral to mainly functional specialisation. We offer an explanation showing …