Nature and Scope of Regional and Urban Economics
Every economic activity has alocation, but dissimilar activities flourish in different areas. The fields of regional and urban economics consider the impact of location and distance on economic activity. The fields of regional and urban economics consider the impact of location and distance on economic activity. Regional economics helps to determine where different types of economic activity will prosper. The primary issue of regional economics concerns the appropriate delineation of a region. Regional economics focuses on proximity and transportation costs, increasing returns to scale and externalities. These components change the face of traditional economic theory. Distance (space) also disrupts macroeconomic theories as they are applied to a regional economy. Macroeconomic models that seem robust on a national or international scale are not as solid at a regional level. The chapter also presents an overview of key concepts discussed in this book.