key insight that emerges is that the interaction between agglomeration economies and comparative advantage involves a … comparative advantage in sectors governed by this force whilst the impact of agglomeration economies is enhanced by trade cost … small economies is not only shaped by the primitives that determine agglomeration economies and comparative advantage but …

into account. Our analysis furthermore implies that market-size based agglomeration forces are too weak to overcome the … very strong congestion force associated with competition for land, unless the consumers' desire of variety (as expressed by … a low elasticity of substitution) is very strong. This suggests that further agglomeration forces have to be invoked to …

The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational … and easily reversible transition from symmetry to agglomeration …

cities toughen competition, allowing only the most productive to survive) and agglomeration economies (larger cities promote … a generalised version of a tractable firm selection model and a standard model of agglomeration. Stronger selection in … larger cities left-truncates the productivity distribution whereas stronger agglomeration right-shifts and dilates the …