EconPapers    
Economics at your fingertips  
 

Agglomeration: A Dynamic Approach

W Hanlon () and Antonio Miscio

No 20728, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper studies the sources of agglomeration economies in cities. We begin by introducing a simple dynamic spatial equilibrium model that incorporates spillovers within and across industries, as well as city-size effects. The model generates a dynamic panel-data estimation equation. We implement the approach using detailed new data describing the industry composition of 31 English cities from 1851-1911. We find that industries grow faster in cities where they have more local suppliers or other occupationally-similar industries. Industries do not grow more rapidly in locations in which they are already large, though there can be exceptions. Thus, dynamic agglomeration appears to be driven by cross-industry effects. Once we control for these cross-industry agglomeration effects, we find a strong negative relationship between city size and city-industry growth. This allows us to construct the first estimate of the aggregate strength of the cross-industry agglomeration forces. Our results suggest a lower bound estimate of the overall strength of agglomeration forces equivalent to a city-size divergence rate of 2.1-3.3 % per decade.

JEL-codes: N9 R11 R12 (search for similar items in EconPapers)
Date: 2014-12
New Economics Papers: this item is included in nep-geo and nep-ure
Note: DAE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Published as W. Walker Hanlon, Antonio Miscio, Agglomeration: A long-run panel data approach, Journal of Urban Economics, Volume 99, 2017, Pages 1-14, ISSN 0094-1190, https://doi.org/10.1016/j.jue.2017.01.001.

Downloads: (external link)
http://www.nber.org/papers/w20728.pdf (application/pdf)

Related works:
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:nbr:nberwo:20728

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w20728

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-12-24
Handle: RePEc:nbr:nberwo:20728