When firms and people are located near each other in cities and in
industrial clusters, they benefit in various ways, including by
reducing the costs of exchanging goods and ideas. One might assume
that these benefits would become less important as transportation
and communication costs fall. Paradoxically, however, cities have
become increasingly important, and even within cities industrial
clusters remain vital.
"Agglomeration Economics" brings together a group of essays that
examine the reasons why economic activity continues to cluster
together despite the falling costs of moving goods and transmitting
information. The studies cover a wide range of topics and approach
the economics of agglomeration from different angles. Together they
advance our understanding of agglomeration and its implications for
a globalized world.
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