Marshall or Jacobs? Answers to an unsuitable question from an interaction model

Jan Kluge and Robert Lehmann

No 124, ifo Working Paper Series from ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Abstract: This paper investigates whether localization economies as brought forward by Marshall (1890) or urbanization economies as mentioned by Jacobs (1970) are more decisive for regional gross value added per capita. Our novel approach is to explicitly allow for interdependencies between these two theories and to take into account that the initial levels of specialization and diversification might play a role. We therefore deploy a model with interaction terms and find that these two theories are not mutually exclusive in most of our sectors. In addition, the empirical results show that the initial levels of specialization and diversification do matter as well.

JEL-codes: C33 O18 O40 R11 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Marshall or Jacobs? New insights from an interaction model (2013)
Working Paper: Marshall or Jacobs? Answers to an unsuitable question from an interaction model (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ifowps:_124

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