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The Empirics of Agglomeration Economies

Handbook of Regional & Urban Economics, 2015, Vol.5, p.247-348

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Title:
The Empirics of Agglomeration Economies
Author: Combes, Pierre-Philippe ; Gobillon, Laurent
Subjects: Agglomeration gains ; Density ; Learning ; Location choices ; Sorting
Is Part Of: Handbook of Regional & Urban Economics, 2015, Vol.5, p.247-348
Description: 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 emphasize the impact of local density on productivity, but we also consider many other local determinants supported by theory. Empirical issues are then addressed. The most important concerns are about endogeneity at the local and individual levels, the choice of a productivity measure between wages and total-factor productivity, and the roles of spatial scale, firms’ characteristics, and functional forms. Estimated impacts of local determinants of productivity, employment, and firms’ location choices are surveyed for both developed and developing economies. We finally provide a discussion of attempts to identify and quantify specific agglomeration mechanisms.
Publisher: Elsevier B.V
Language: English
Identifier: ISSN: 1574-0080
ISBN: 9780444595331
ISBN: 0444595333
DOI: 10.1016/B978-0-444-59517-1.00005-2
Source: ScholarVox International

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