“…This revival of the market potential function led to a broad range of empirical literature explaining spatial divergence in income and the distribution of economic activity (see Redding, ). Within this strand of literature, some approaches were explicitly dedicated to the explanation of urban growth, combining the NEG with the more traditional urban economics literature (e.g., Au & Henderson, ; Black & Henderson, ; Da Mata, Deichmann, Henderson, Lall, & Wang, ; González‐Val, Tirado‐Fabregat, & Viladecans‐Marsal, ). All of those estimations find a strong positive relation between market potential and urban population and/or income growth.…”