The inextricable nature of space and economy

Space has always been essential within the economy, yet its importance in economics has been downplayed in several ways. This editorial introduces the seven papers comprising this issue of Spatial Economic Analysis (SEA) and shows that while the classics of economics acknowledged the importance of the location of economic activities, for many years the study of space was left to heterodox economics scholars and geographers. This is despite the established tradition of learned societies, such as Regional Science International and the Regional Studies Association, which are placed at the intersection of these fields. Space finally became mainstream in economics again due, on the one hand, to the introduction of the new economic geography some 30 years ago and, on the other, to the fact that several different economic sub-disciplines have come to understand and consider space as essential for the processes they study. This was facilitated by methodological advancements, such as in spatial econometrics. The seven papers in this issue henceforth illustrate some of the situations and approaches which make space relevant to contemporary economic questions. Essential are, in particular, the interactions between different locations and the interactions between individuals and geographical features.