Abstract
<jats:title>Abstract</jats:title> <jats:p>Spatial Economics provides a framework for understanding how economic activities organize spatially, shaped by the trade-off between increasing returns to scale and transportation costs. The book highlights the tension between forces driving agglomeration—such as shared inputs, labor market matching, and knowledge spillovers—and those driving dispersion, including transportation costs, land scarcity, and congestion. This interplay explains the geographic inequalities that define modern economies. The dual role of land and transportation is central. Land is immobile and inelastically supplied, driving competition for prime locations and disparities in economic outcomes. Transportation connects spatially separated agents, enabling markets and agglomeration but imposes costs that influence locational choices. Together, these factors explain the formation and persistence of cities, regional clusters, and global economic patterns. The book combines classical theories with modern tools, shedding light on mechanisms shaping urban growth, regional disparities, and land market dynamics. It emphasizes how market failures—arising from externalities, imperfect competition, and transport frictions—interact with geographic forces. Policy issues, such as the effects of infrastructure investments, land-use regulations, and place-based interventions, are analyzed with a focus on their implications for inequality and welfare. By synthesizing theoretical insights with empirical evidence through econometric methods and quantitative spatial equilibrium models, the book provides a robust framework for addressing pressing challenges in urbanization, inequality, and sustainable development in the 21st century.</jats:p>