Discussion paper

DP8119 The Identification of Agglomeration Economies

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.


Duranton, G, P Combes and L Gobillon (2010), ‘DP8119 The Identification of Agglomeration Economies‘, CEPR Discussion Paper No. 8119. CEPR Press, Paris & London. https://cepr.org/publications/dp8119