Elsevier S & T

Handbook of Regional and Urban Economics: Cities and Geography

Henderson, V.; Thisse, J.F.

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Table of contents
  • Cover
  • Handbook of Regional and Urban Economics Volume 4iii
  • Copyright Pageiv
  • Introduction to the Seriesv
  • Contents of the Handbookvii
  • Contents of Volume 4xv
  • Forewordxxvii
  • PART 1: CITIES AND URBAN SYSTEMS: FROM THEORY TO FACTS2061
  • Chapter 48. Micro-foundations of Urban Agglomeration Economies2063
  • 1. Introduction2065
  • 2. Sharing2067
  • 3. Matching2086
  • 4. Learning2098
  • 5. Concluding comments2109
  • References2111
  • Chapter 49. Evidence on the Nature and Sources of Agglomeration Economies2119
  • 1. Introduction2121
  • 2. The scope of urban increasing returns2124
  • 3. The sources of urban increasing returns2144
  • 4. Case evidence2162
  • 5. Conclusion2166
  • References2167
  • Chapter 50. Neighborhood Effects2173
  • 1. Introduction2175
  • 2. Theory2179
  • 3. Econometrics2204
  • 4. Empirical studies2211
  • 5. Additional evidence on neighborhood effects2225
  • 6. Conclusions2231
  • Appendix: Selection correction for neighborhood effects regressions based on the multinomial logit m2233
  • References2234
  • Chapter 51. Human Capital Externalities in Cities2243
  • 1. Introduction2245
  • 2. Recent trends in the geographic distribution of human capital across cities2247
  • 3. Theories of social returns to education2254
  • 4. Estimating productivity spillovers in cities2260
  • 5. Empirical evidence on other social benefits of education: crime and voting2286
  • 6. Conclusion2288
  • References2289
  • Chapter 52. Theories of Systems of Cities2293
  • 1. Introduction2295
  • 2. Internal structure of cities2298
  • 3. Urban agglomeration and optimal city size2300
  • 4. City formation mechanisms2306
  • 5. Key issues and a summary of historical developments in the literature2312
  • 6. Homogeneous labor2317
  • 7. Heterogeneous labor2324
  • 8. Efficiency and the role of central planning in city systems2327
  • 9. Growth2330
  • 10. Challenges ahead2335
  • References2336
  • Chapter 53. The Evolution of City Size Distributions2341
  • 1. Introduction2343
  • 2. Zipf's law for the upper tail of the city size distribution2344
  • 3. Random growth and Zipf’s law2354
  • 4. Economic explanations for Zipf’s law other than Gibrat’s law2361
  • 5. Dynamics of the evolution of city size distributions2364
  • 6. The empirical evidence on the determinants of urban growth2370
  • 7. Conclusion2373
  • Appendix: Zipf’s law and urban primacy2374
  • References2375
  • PART 2: THE DESIGN OF LOCAL GOVERMENTS AND POLICIES2379
  • Chapter 54. Urban Political Economics2381
  • 1. Introduction2383
  • 2. Objectives and local policy formation2384
  • 3. Local political institutions2397
  • 4. Private government2405
  • 5. Conclusions2415
  • References2416
  • Chapter 55. Fiscal Decentralization2423
  • 1. Introduction2426
  • 2. Increasing fiscal decentralization around the World2427
  • 3. Theoretical literature on fiscal decentralization2428
  • 4. Adding a hierarchical dimension to decentralized government competition2452
  • 5. Empirical research2462
  • 6. Conclusions2471
  • References2472
  • Chapter 56. Sprawl and Urban Growth2481
  • 1. Introduction2483
  • 2. The extent of sprawl2486
  • 3. The causes of sprawl2492
  • 4. Evaluating the transportation cost hypothesis2497
  • 5. Evaluating other causes of sprawl: the demand for land and flight from blight2504
  • 6. Evaluating other causes of sprawl: the political roots of sprawl2506
  • 7. Is sprawl bad?2508
  • 8. Conclusion2520
  • Appendix: Proofs of propositions2521
  • References2525
  • Chapter 57. Factor Mobility and Redistribution2529
  • 1. Introduction2531
  • 2. The benchmark model and the race to the bottomŽ result2533
  • 3. Qualifications2537
  • 4. Tax competition and tax cooperation2543
  • 5. Intergenerational redistribution and tax competition2552
  • 6. Conclusion2556
  • References2558
  • PART 3: ECONOMIC GEOGRAPHY AND THE GEOGRAPHY OF MODERN ECONOMIES2561
  • Chapter 58. Agglomeration and Economic Geography2563
  • 1. Introduction2565
  • 2. The legacy of location theory2569
  • 3. Where do firms locate: the home market effect2576
  • 4. The core–periphery structure2587
  • 5. The bell-shaped curve of spatial development2598
  • 6. Where do we go from here2602
  • References2604
  • Chapter 59. The Empirics of Agglomeration and Trade2609
  • 1. Introduction2611
  • 2. Defining, delimiting, and testing the NEG2612
  • 3. Preliminaries: defining and measuring market potential2616
  • 4. Market potential raises factor prices2621
  • 5. Market potential attracts factor inflows2627
  • 6. Home market/magnification effects2633
  • 7. Trade-induced agglomeration2644
  • 8. Instability, persistence, and agglomeration2658
  • 9. Conclusion2662
  • Appendix: Data appendix of Figure 42664
  • References2665
  • Chapter 60. Agglomeration and Regional Growth2671
  • 1. Introduction2673
  • 2. The basic framework of growth and agglomeration2675
  • 3. The case without localized spillovers growth: matters for geography2679
  • 4. The case with localized spillovers: geography matters for growth (and vice versa)2689
  • 5. Other contributions2703
  • 6. Concluding remarks2706
  • References2709
  • Chapter 61. Knowledge Spillovers and the Geography of Innovation2713
  • 1. Introduction2715
  • 2. The knowledge production function2716
  • 3. Geography and the role of spillovers2717
  • 4. Penetrating the black box of geographic space2723
  • 5. Spillover mechanisms2726
  • 6. Entrepreneurship as a spillover mechanism2728
  • 7. Conclusions2734
  • References2735
  • Chapter 62. Regional (Di)Convergence2741
  • 1. Introduction2743
  • 2. The ‘regression approach’2744
  • 3. Factor mobility and spatial interaction2756
  • 4. The distributional approach to convergence2765
  • 5. Conclusions2779
  • Appendix A: NUTS regions2781
  • Appendix B: Functional urban regions2782
  • Appendix C: NUTS – per capita GDP (annual average) growth 1980–19952783
  • Appendix D: FURs – per capita GDP (annual average) growth 1980–19952787
  • References2791
  • Chapter 63. Spatial Distribution of Economic Activities in North America2797
  • 1. Introduction2799
  • 2. Data2801
  • 3. Patterns of regional specialization2807
  • 4. Specialization by urbanization2819
  • 5. Some facts about specialized industries2828
  • 6. Understanding the location of industry2831
  • 7. Conclusion2839
  • Appendix A: Data sources2839
  • References2841
  • Chapter 64. The Spatial Distribution of Economic Activities in the European Union2845
  • Introduction2847
  • 1. Data for studying the spatial distribution of economic activity in the European Union2848
  • 2. Facts about the spatial distribution of economic activity in the European Union2852
  • 3. Explanations2878
  • 4. Conclusions2904
  • References2905
  • Chapter 65. Spatial Distribution of Economic Activities in Japan and China2911
  • 1. Introduction2913
  • 2. Distribution of economic activities in Japan2914
  • 3. Urbanization in China2951
  • References2974
  • PART 4: THE LONG-RUN VIEW ON CITIES AND GEOGRAPHY2979
  • Chapter 66. Historical Perspectives on U.S. Economic Geography2981
  • 1. Introduction2983
  • 2. U.S. regional development2983
  • 3. U.S. urban development2994
  • 4. Conclusion3012
  • References3014
  • Chapter 67. The Historical Geography of European Cities: An Interpretive Essay3021
  • 1. Introduction3023
  • 2. A systems perspective3025
  • 3. Pre-industrial spatial patterns3030
  • 4. The early-modern period (1500–1800)3032
  • 5. Proto-industrialization and towns3034
  • 6. The early modern city: an appraisal3036
  • 7. Cities and industrialization3036
  • 8. Urban formations of the industrial age3037
  • 9. Migration3040
  • 10. Metropolitan areas and their transformations in the industrial age3041
  • 11. Laggards and losers3042
  • 12. Urban growth and urban systems in the industrial age3042
  • 13. The first twentieth century3043
  • 14. The second twentieth century3044
  • 15. Urban growth and migration3047
  • 16. Recent urban formations3048
  • 17. Urban spatial structure in post-industrial Europe3049
  • 18. Conclusion3050
  • References3051
  • Colour figures3053
  • Author indexI-1
  • Subject indexI-25
Book details
  • Vendor Elsevier S & T
  • SKU 9780444509673
  • ISBN-13 9780080495125
  • Author Henderson, V.; Thisse, J.F.
  • Category Business & Economics
  • Subject Urban & Regional

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The new Handbook of Regional and Urban Economics: Cities and Geography reviews, synthesizes and extends the key developments in urban and regional economics and their strong connection to other recent developments in modern economics. Of particular interest is the development of the new economic geography and its incorporation along with innovations in industrial organization, endogenous growth, network theory and applied econometrics into urban and regional economics.


The chapters cover theoretical developments concerning the forces of agglomeration, the nature of neighborhoods and human capital externalities, the foundations of systems of cities, the development of local political institutions, regional agglomerations and regional growth. Such massive progress in understanding the theory behind urban and regional phenomenon is consistent with on-going progress in the field since the late 1960’s. What is unprecedented are the developments on the empirical side: the development of a wide body of knowledge concerning the nature of urban externalities, city size distributions, urban sprawl, urban and regional trade, and regional convergence, as well as a body of knowledge on specific regions of the world—Europe, Asia and North America, both current and historical.


The Handbook is a key reference piece for anyone wishing to understand the developments in the field.