Rethinking the 'new' geographical economics

Mainstream economics and geography have largely developed separately. With some notable exceptions, this had led to a situation in which economists and geographers analyse similar issues, but do so in a very different framework and without taking much notice of each other's work. The main topic of this paper is to show that something might be gained once communication is improved. We illustrate this by means of a discussion of 'new geographical economics' also known as the 'new economic geography', to date the only mainstream theory in economics that takes the economics of location seriously.