This paper reviews Paul Krugman's fundamental contributions to new trade theory (NTT) and new economic geography (NEG) on the occasion of his 2008 Nobel Prize. We appraise the impact his work had on the field of regional science broadly defined, and we quantify its influence on papers published...

We investigate how alternative ways of modelling trade costs affect the main results of "new" economic geography. In order to do so, we compare the impacts of falling transport costs and decreasing tariffs on the spatial distribution of economic activities. Our analysis reveals that tariffs and...