Citation

Discussion Paper Details

Please find the details for DP10174 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: The empirics of agglomeration economies

Author(s): Pierre-Philippe Combes and Laurent Gobillon

Publication Date: September 2014

Keyword(s): agglomeration gains, density, learning, location choices and sorting

Programme Area(s): International Trade and Regional Economics

Abstract: 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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10174

Bibliographic Reference

Combes, P and Gobillon, L. 2014. 'The empirics of agglomeration economies'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10174