The Empirics of Agglomeration Economies
Copyright policy )The Empirics of Agglomeration Economies
We propose an integrated framework to discuss the empirical literature on the local determinants of agglomeration effects. We start by presenting the theoretical mechanisms that ground individual and aggregate empirical specifications. We gradually introduce static effects, dynamic effects, and workers' endogenous location choices. We emphasise the impact of local density on productivity but we also consider many other local determinants supported by theory. Empirical issues are then addressed. Most important concerns are about endogeneity at the local and individual levels, the choice of a productivity measure between wage and TFP, and the roles of spatial scale, firms' characteristics, and functional forms. Estimated impacts of local determinants of productivity, employment, and firms' locations choices are surveyed for both developed and developing economies. We finally provide a discussion of attempts to identify and quantify specific agglomeration mechanisms.
Location choices, JEL: R - Urban, 330, JEL: J - Labor and Demographic Economics/J.J3 - Wages, Density, Real Estate, and Transportation Economics/R.R1 - General Regional Economics/R.R1.R12 - Size and Spatial Distributions of Regional Economic Activity, Agglomeration Gains; Density; Learning; Location Choices and Sorting, agglomeration gains, R23, [SHS]Humanities and Social Sciences, Agglomeration gains, Agglomeration gains,Density,Sorting,Learning,Location choices, and Labor Costs/J.J3.J31 - Wage Level and Structure • Wage Differentials, Location Choices and Sorting, agglomeration gains, density, sorting, learning, location choices, Learning, Rural, J31, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Economie quantitative, density, learning, ddc:330, Sorting, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Regional, R12, and Transportation Economics/R.R2 - Household Analysis/R.R2.R23 - Regional Migration • Regional Labor Markets • Population • Neighborhood Characteristics, agglomeration gains; density; learning; location choices; sorting, [SHS] Humanities and Social Sciences, Compensation, Agglomeration Gains, location choices, sorting, jel: jel:R23, jel: jel:J31, jel: jel:R12
Location choices, JEL: R - Urban, 330, JEL: J - Labor and Demographic Economics/J.J3 - Wages, Density, Real Estate, and Transportation Economics/R.R1 - General Regional Economics/R.R1.R12 - Size and Spatial Distributions of Regional Economic Activity, Agglomeration Gains; Density; Learning; Location Choices and Sorting, agglomeration gains, R23, [SHS]Humanities and Social Sciences, Agglomeration gains, Agglomeration gains,Density,Sorting,Learning,Location choices, and Labor Costs/J.J3.J31 - Wage Level and Structure • Wage Differentials, Location Choices and Sorting, agglomeration gains, density, sorting, learning, location choices, Learning, Rural, J31, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Economie quantitative, density, learning, ddc:330, Sorting, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Regional, R12, and Transportation Economics/R.R2 - Household Analysis/R.R2.R23 - Regional Migration • Regional Labor Markets • Population • Neighborhood Characteristics, agglomeration gains; density; learning; location choices; sorting, [SHS] Humanities and Social Sciences, Compensation, Agglomeration Gains, location choices, sorting, jel: jel:R23, jel: jel:J31, jel: jel:R12
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