This volume presents developments in urban geography, club theory, local public finance, and international trade which contribute to the explanation of the modern opposing trends.

Foreword Haim Ben-Shahar; Introduction Efraim Sadka, David Pines and Itzhak Zilcha; Part I. New Perspectives on Urban Development: 1. A 'slime mold' model of city formation Paul A. Krugman; 2. The size of regions: transport and housing as factors in agglomeration Elhanan Helpman; Part II. The Economics of Clubs: 3. First and second welfare theorems for economies with collective goods Vicky Barham and Myrna H. Wooders; 4. Anonymous pricing in Tiebout economies and economics with clubs John Conley and Myrna H. Wooders; 5. Decentralization in club economies: how multiple private goods matter Robert P. Gilles and Suzanne A. Scotchmer; 6. Incentives and disagglomerative forces: some modelling problems Roger Guesnerie; Part III. The Provision of Public Goods: 7. Self-financing of congestible facilities in a growing economy Richard Arnott and Marvin Kraus; 8. The monopolistic provision of congested public goods William H. Oakland; 9. Imperfect solutions to the musical-suburbs problem John D. Wilson; 10. Nationalism and secession Daniel Berkowitz; Part IV. Taxation and Distribution: 11. Why is there corporate taxation in a small open economy? The role of transfer pricing and income shifting Roger H. Gordon and Jeffrey K. MacKie-Mason; 12. Patterns of tax arbitrage and decentralized tax autonomy Bernd Genser; 13. Destination- and origin-based taxation under international capital mobility A. Lans Bovenberg; 14. Factor mobility, risk, and redistribution in the welfare state David E. Wildasin.