  The goal of this study is to analyze the dynamics underlying Algiers urban
area formation with reference to The New Economic Geography (NEG) theories and
more precisely to the paper of Paul Krugman (1991), "Increasing returns and
economic geography" which explains the mechanisms of economic activities
concentration through two types of forces: centripetal forces enhancing the
economic activities concentration and centrifugal forces hindering the
agglomeration process. In fact, these mechanisms are translated into a system
of nonlinear equations which is very hard to solve analytically. As a
consequence, the use of numerical methods is highly advocated. We present some
numerical simulations using real Algerian data.
