On the Contribution of Agglomeration Economies to Spatial Concentration of US Employment

Satyajit Chatterjee ()

No 164, Econometric Society 2004 North American Summer Meetings from Econometric Society

Abstract: In this paper I explore,via a quantitative spatial macroeconomic model, the contribution of agglomeration economies to the observed spatial concentration of US employment. The approach is analogous to "growth accounting." The results of the "spatial accounting" depend on the details of the model used. The critical detail pertains to how the model rationalizes the stability of low-density localities. If it is rationalized via an appeal to restrictions on labor mobility, the accounting implies that the bulk of spatial concentration results from an unequal distribution of natural advantages. In contrast, if it is rationalized via an agglomeration threshold (an employment level below which local increasing returns do not operate),the accounting implies that the bulk of the spatial concentration results from increasing returns

Keywords: Agglomeration Economies; Natural Advantage; Density; Congestion (search for similar items in EconPapers)
JEL-codes: R12 R13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-geo
Date: 2004-08-11
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Persistent link: http://EconPapers.repec.org/RePEc:ecm:nasm04:164

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