Urban productivity estimation with heterogeneous prices and labour

David C. Mare

No 290558, Motu Working Papers from Motu Economic and Public Policy Research

Abstract: This study estimates differences in productivity (mfp) across New Zealand urban areas, with a focus on the size of Auckland’s productivity premium. The estimates are based on analysis of firm-level data from Statistics New Zealand’s Longitudinal Business Database. The methods used in the paper overcome some of the biases that arise in standard approaches to spatial productivity estimation - biases arising from imperfect competition, spatial price variation, firm heterogeneity, and labour-sorting across cities. Ignoring these factors leads to biased estimates of the Auckland’s relative productivity performance. The study also investigates industry differences in spatial productivity patterns.

Keywords: Community/Rural/Urban Development; Productivity Analysis (search for similar items in EconPapers)
Pages: 54
Date: 2016-11
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Persistent link: https://EconPapers.repec.org/RePEc:ags:motuwp:290558

DOI: 10.22004/ag.econ.290558

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