Modeling a micro-structure of agglomeration economies, this article derives a second-best benefit evaluation formula for urban transportation improvements. Without explicitly modeling the sources of agglomeration economies, Venables (JTEP 2007) investigated the same problem. This article...

In this chapter we look at the spatial distribution of economic activities in China and Japan. Japan has excellent data and relatively uniform institutions since World War II, which allow us to track its spatial evolution and detail its key features today. For Japan we show how structural shifts...