Micro-Foundations of Urban Agglomeration Economies

Gilles Duranton and Diego Puga

No 9931, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This handbook chapter studies the theoretical micro-foundations of urban agglomeration economies. We distinguish three types of micro-foundations, based on sharing, matching, and learning mechanisms. For each of these three categories, we develop one or more core models in detail and discuss the literature in relation to those models. This allows us to give a precise characterisation of some of the main theoretical underpinnings of urban agglomeration economies, to discuss modelling issues that arise when working with these tools, and to compare different sources of agglomeration economies in terms of the aggregate urban outcomes they produce as well as in terms of their normative implications.

JEL-codes: R12 R13 (search for similar items in EconPapers)
Date: 2003-09
New Economics Papers: this item is included in nep-geo and nep-ure
Note: ITI
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Citations: View citations in EconPapers (97)

Published as Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117 Elsevier.

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Chapter: Micro-foundations of urban agglomeration economies (2004)
Working Paper: Microfoundations of Urban Agglomeration Economies (2003)
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