EconPapers    
Economics at your fingertips  
 

Growth in a cross-section of cities: location, increasing returns or random growth?

Rafael González-Val () and Jose Olmo ()

No 2011/39, Working Papers from Institut d'Economia de Barcelona (IEB)

Abstract: This article analyzes empirically the main existing theories on income and population city growth: increasing returns to scale, locational fundamentals and random growth. To do this we implement a threshold nonlinearity test that extends standard linear growth regression models to a dataset on urban, climatological and macroeconomic variables on 1,175 U.S. cities. Our analysis reveals the existence of increasing returns when per-capita income levels are beyond $19; 264. Despite this, income growth is mostly explained by social and locational fundamentals. Population growth also exhibits two distinct equilibria determined by a threshold value of 116,300 inhabitants beyond which city population grows at a higher rate. Income and population growth do not go hand in hand, implying an optimal level of population beyond which income growth stagnates or deteriorates.

Keywords: Threshold nonlinearity test; locational fundamentals; multiple equilibria; random growth (search for similar items in EconPapers)
JEL-codes: C12 C13 C33 O1 R0 R11 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ieb.ub.edu/wp-content/uploads/2018/04/2011-IEB-WorkingPaper-39.pdf (application/pdf)

Related works:
Journal Article: Growth in a Cross-section of Cities: Location, Increasing Returns or Random Growth? (2015) Downloads
Working Paper: Growth in a Cross-Section of Cities: Location, Increasing Returns or Random Growth? (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ieb:wpaper:doc2011-39

Access Statistics for this paper

More papers in Working Papers from Institut d'Economia de Barcelona (IEB) Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-01-16
Handle: RePEc:ieb:wpaper:doc2011-39