Regional labor markets are characterized by huge disparities of unemployment rates. Models of the New Economic Geography explain how disparities of regional goods markets endogenously arise but usually assume full employment. This paper discusses regional unemployment disparities by introducing...

This paper analyzes the impact of the German autobahn net on the economic performance of German regions. To address endogeneity and reverse causation problems, we use historical instrument variables, i.e. a plan of the railroad net in 1890 and a plan of the autobahn net in 1937. We find a...

Chile is characterized as being a country with an extreme concentration of the economic activity around Santiago. In spite of this, and in contrast to what is found in many industrialized countries, income levels per inhabitant in the capital are below the country average and far from the levels...

Regional labor markets are characterized by huge disparities of unemployment rates. Models of the New Economic Geography explain how disparities of regional goods markets endogenously arise but usually assume full employment. This paper discusses regional unemployment disparities by introducing...

We study the effect of international trade and freeness of trade (openness) on interregional inequality within countries. We estimate a model derived from a structural economic-geography approach in which interregional inequality depends on weighted trade shares and trade costs. In addition to...

This chapter provides a comprehensive view on the field of New Economic Geography (NEG). It starts by describing the background in adjacent fields of economics which made the surge of NEG possible. It lays out the necessary ingredients and fundamental forces at work that define any NEG framework...