2012
DOI: 10.3386/w18188
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A Spatial Knowledge Economy

Abstract: Leading empiricists and theorists of cities have recently argued that the generation and exchange of ideas must play a more central role in the analysis of cities. This paper develops the first system of cities model with costly idea exchange as the agglomeration force. Our model replicates a broad set of established facts about the cross section of cities. It provides the first spatial equilibrium theory of why skill premia are higher in larger cities, how variation in these premia emerges from symmetric fund… Show more

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Cited by 74 publications
(103 citation statements)
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“…Davis and Dingel (2013) provide evidence that cities' skill distributions are consistent with the log-supermodularity assumption. 21 Varieties are thus both vertically and horizontally differentiated (Beath and Katsoulacos, 1991, p.4-6).…”
Section: Preferencesmentioning
confidence: 73%
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“…Davis and Dingel (2013) provide evidence that cities' skill distributions are consistent with the log-supermodularity assumption. 21 Varieties are thus both vertically and horizontally differentiated (Beath and Katsoulacos, 1991, p.4-6).…”
Section: Preferencesmentioning
confidence: 73%
“…It is plausible that plants with observationally equivalent workforces in terms of non-production-to-production-worker ratios may differ in worker quality. In particular, prior research has documented weak but systematic sorting of workers across cities on unobservable characteristics correlated with higher wages (Davis and Dingel, 2012;De la Roca and Puga, 2012). However, these differences between workers should appear in the plant-level wage data, and the third and sixth columns of Table 3 includes plant-level wage measures.…”
Section: The Factor-abundance Hypothesismentioning
confidence: 99%
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“…In later research, Tabuchi, Thisse, & Zhu (2016) analyzed influence of technological progress in manufacturing and transportation together with migration costs for formation of space. The explanation why skill premia is higher in larger cities, how variation in these premia emerges from symmetric fundamentals, and why skilled workers have higher migration rates than unskilled workers when both are fully mobile is presented in research (Davis & Dingel, 2012).…”
Section: Introductionmentioning
confidence: 99%
“…In their model, agents living in a city barter knowledge and develop a reputation for cooperation, in line with von Hippel's evidence on 'know-how' sharing. Finally, Davis and Dingel (2012) consider idea exchange as an agglomeration force in a system of cities model.…”
Section: Introductionmentioning
confidence: 99%