Kiel Working Papers, Kiel Institute for World Economics
No 941:
The New Geographical Economics and the German Fonnders of Regional Economics
Andreas Kopp
Abstract: In the working paper we address the question whether the
upsurge in geographical economics is related to the early works of the
founders of the German school of regional economics. More specifically we
examine why the German geographical economists were an exception of being a
successful school in international mainstream economics, and why there was
little competition between alternative schools of regional economics.
We
argue that the answer lies in the difficulties to combine geographical
economics and the dominant economic theory of perfect competition. Much of
the recent success of the New Geographical Economics lies in the fact that
it is based on a model of monopolistic competition which sidesteps the
problems that were posed by geography for the economics of perfect
competition. The basis of this model of monopolistic competition provides,
however, limited opportunity to pursue the research objectives of the
German School of regional economics.
60 pages, July 1999
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