Since 1990 there has been a surge of theoretical and empirical work on the spatial aspects of the economy. The text discusses this area of contemporary economics - the "new economic geography". The authors show how seemingly disparate models reflect a few basic themes, and in so doing they develop a common "grammar" for discussing a variety of issues.

They show how an approach that emphasizes the three-way interaction among increasing returns, transportation costs and the movement of productive factors can be applied to issues in urban, regional and international economics. The book aims to provide an explanation of the existence of large economic agglomerations at various spatial scales.