Agglomerative Forces and Cluster Shapes
William Kerr () and
Working Papers from U.S. Census Bureau, Center for Economic Studies
We model spatial clusters of similar firms. Our model highlights how agglomerative forces lead to localized, individual connections among firms, while interaction costs generate a defined distance over which attraction forces operate. Overlapping firm interactions yield agglomeration clusters that are much larger than the underlying agglomerative forces themselves. Empirically, we demonstrate that our model’s assumptions are present in the structure of technology and labor flows within Silicon Valley and its surrounding areas. Our model further identifies how the lengths over which agglomerative forces operate influence the shapes and sizes of industrial clusters; we confirm these predictions using variations across both technology clusters and industry agglomeration.
Keywords: CES; economic; research; micro; data; microdata; agglomeration; clusters; industrial organization; Silicon Valley; entrepreneurship; labor markets; technology flows; patents; natural advantages (search for similar items in EconPapers)
JEL-codes: J2 J6 L1 L2 L6 O3 R1 R3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-ent, nep-geo, nep-ino, nep-sbm and nep-ure
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https://www2.census.gov/ces/wp/2012/CES-WP-12-09.pdf First version, 2012 (application/pdf)
Journal Article: Agglomerative Forces and Cluster Shapes (2015)
Working Paper: Agglomerative Forces and Cluster Shapes (2012)
Working Paper: Agglomerative Forces and Cluster Shapes (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:12-09
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