New economic geography: past and future

This chapter does not aim to survey what has been accomplished in new economic geography (NEG) since the publication of Paul Krugman's seminal paper. Rather, we provide an overview of recent developments in the NEG literature that build on the idea that the difference in the economic performance of regions is explained by the behavior and interactions between households and firms locates within them. This means that we consider NEG models which take into account land markets, thereby the internal structure and industrial mix of urban agglomerations