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Discussion Paper Details

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Title: The Identification of Agglomeration Economies

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

Publication Date: November 2010

Keyword(s): agglomeration economies, instrumental variables, natural experiments and structural estimation

Programme Area(s): International Trade and Regional Economics

Abstract: Measures of urban productivity are typically positively associated with city population. But is this relationship causal? We discuss the main sources of bias in the proper identification of agglomeration effects. We also assess a variety of solutions that have been proposed in the literature to deal with them.

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Bibliographic Reference

Combes, P, Duranton, G and Gobillon, L. 2010. 'The Identification of Agglomeration Economies'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=8119