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The Empirics of Agglomeration Economies

Pierre-Philippe Combes and Laurent Gobillon ()

Chapter Chapter 5 in Handbook of Regional and Urban Economics, 2015, vol. 5, pp 247-348 from Elsevier

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 emphasize the impact of local density on productivity, but we also consider many other local determinants supported by theory. Empirical issues are then addressed. The most important concerns are about endogeneity at the local and individual levels, the choice of a productivity measure between wages and total-factor productivity, and the roles of spatial scale, firms’ characteristics, and functional forms. Estimated impacts of local determinants of productivity, employment, and firms’ location choices are surveyed for both developed and developing economies. We finally provide a discussion of attempts to identify and quantify specific agglomeration mechanisms.

Keywords: Agglomeration gains; Density; Sorting; Learning; Location choices; R12; R23; J31 (search for similar items in EconPapers)
Date: 2015
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Related works:
Working Paper: The Empirics of Agglomeration Economies (2015)
Working Paper: The empirics of agglomeration economies (2014) Downloads
Working Paper: The Empirics of Agglomeration Economies (2014) Downloads
Working Paper: The Empirics of Agglomeration Economies (2014) Downloads
Working Paper: The empirics of agglomeration economies (2014) Downloads
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