Do agglomeration economies decay over short distances? Are they stable in the face of shocks? Evidence from Manhattan

Matthew P. Drennan

International Journal of Urban Sciences, 2018, vol. 22, issue 1, 1-16

Abstract: This paper analyzes agglomeration economies of four producer service industries in Manhattan applying panel regression to a sample of zip codes and years. Agglomeration economies accrue to producer services in Manhattan, and they decay with distance from their core. Applying the same analysis to three goods production and distribution industries in Manhattan, none show evidence that inferred agglomeration economies decay with distance. Did the shock of 9/11, destabilize the intense concentration of producer service establishments in Manhattan? No. However, the natural experiment of forced relocation shows a strong preference for midtown Manhattan locations over downtown Manhattan locations.

Date: 2018
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DOI: 10.1080/12265934.2017.1407253

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