'Geographical economics is a broad field which encompasses or connects with the economics of region, cities, location, trade, development, and growth. Academic research in these areas has gone in many directions and made lots of progress in recent years. The first accomplishment of this New Introduction to Geographical Economics was to digest this diverse and fast growing body of knowledge. The second achievement of this great book is to be able to present everything in a clear, comprehensive, and accessible manner.' Gilles Duranton, Noranda Chair in International Trade and Development, University of Toronto 'In recent years geographical economics has gained momentum, in both academic and policy circles. This has happened thanks to a series of remarkably original contributions pioneered by the Nobel Prize Winner Paul Krugman. The combination of imperfect competition, increasing returns to scale, and transport technologies in new and powerful ways have helped to clarify the microeconomic foundations of both urban and regional imbalances at the national and the international levels. Steven Brakman, Harry Garretsen and Charles van Marrewijk provide students and fellow researchers with a timely and accurate introduction to the state-of-the- art of this vibrant field of research.' Gianmarco I.P. Ottaviano, Bocconi University Milan 'The authors provide a very nice and clear overview of what has been accomplished in this new field. Undergraduate students and teachers have no excuse anymore for ignoring the theoretical and empirical material uncovered by geographical economists. They now have a great text handy.' Jacques Thisse, CORE, Universite Louvain-la-Neuve 'The authors' 2001 graduate textbook was a masterful combination of theory, facts and examples - the book made it easy to interest students in this difficult but essential topic. With the 2008 Nobel going to Paul Krugman, in part for his contribution to Economic Geography, this second edition could not come at a bet