Several implications of spatial economics on the realization of flourishing neighborhood areas

Abstract

Using the unified framework of an agglomeration/shrinkage process, this paper explains several implications of spatial economics concerning the question of how to make neighborhood areas flourishing. We show that it is achieved through widening the varieties of goods and services provided in a neighborhood area, maintaining the population and population density in the area, and reducing the transport costs within the area. In addition, we argue that the timing of carrying out policies is important to prevent the shrinkage of a neighborhood area： it is necessary to conduct policies before or at least immediately after the shrinkage begins.