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    This paper was produced as part of the Globalization Programme of the ESRC-funded Centre for Economic Performance at the London School of Economics. Financial support under the European Union Research Training grant MRTN-CT-2006-035873 is gratefully acknowledged. I am grateful to the editor (Gilles Duranton), my discussant (Kristian Behrens), and participants at the Journal of Regional Science 50th Anniversary Symposium at the Federal Reserve Bank of New York for helpful comments and suggestions. I am also grateful to a number of co-authors and colleagues for insight, discussion, and comments, including in particular Tony Venables, and also Guy Michaels, Henry Overman, Esteban Rossi-Hansberg, Peter Schott, Daniel Sturm, and Nikolaus Wolf. I bear sole responsibility for the opinions expressed and any errors.


ABSTRACT Although a rich and extensive body of theoretical research on new economic geography has emerged, empirical research remains comparatively less well developed. This paper reviews the existing empirical literature on the predictions of new economic geography models for the distribution of income and production across space. The discussion highlights connections with other research in regional and urban economics, identification issues, potential alternative explanations, and possible areas for further research.