CEU, Economics Department


Lecturer: Prof. Jacques Thisse
CORE, Université catholique de Louvain, Belgium
Course: 1 credit

Course Outline:

1. A historical overview of location theory (OT) and the breakdown of the price system in a
    spatial economy (FT, chapter 2): one lecture.

2. Monopolistic competition and the home market effect (OT): one lecture.

3. Industrial agglomeration under Marshallian externalities (FT, chapters 4 and 8): one lecture.

4. The core-periphery-model (FT, chapter 9 and OT): one lecture.

5. The bell-shaped curve of spatial development (OT): one lecture.

6. Discrete choice theory and probabilistic migrations (TT): one lecture.

Reading list

FT : M. Fujita and J.-F. Thisse (2002) Economics of Agglomeration, Cambridge University Press.

OT : G.I.P. Ottaviano and J.-F. Thisse (2004) Agglomeration and economic geography,  in
Volume 4 of the Handbook of Regional and Urban Economics, Elsevier, edited by V. Henderson
and J. Thisse.

TT: T. Tabuchi and J.-F. Thisse (2002) Taste heterogeneity, labor mobility and economic geography,
Journal of Development Economics 69, 155-177.

FT and OT contain a very large number of references, some of which will be discussed in class.

Course requirements

A good knowledge of and an intellectual interest for microeconomics, industrial organization and
game theory are required.


The organization of the exam and/or of projects will be discussed in class.