Agglomeration Theory with Heterogeneous Agents

Behrens, Kristian; Robert‐Nicoud, Frédéric

doi:10.1016/b978-0-444-59517-1.00004-0

Cited by 90 publications

(73 citation statements)

References 123 publications

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“…On the other hand, high-skilled individuals usually prefer to live in denser cities (Bacolod et al, 2009;Glaeser and Resseger, 2010) causing output per worker to increase because of workers sorting. Behrens and Robert-Nicoud (2015) propose a unique theoretical framework supported by the empirical literature that shows a reduction in agglomeration benefits once productivity endogeneity is taken into account (Melo et al, 2009). Finally, spatial relationships among metropolitan areas matter as well.…”

Section: Productivity Differences Across Us Msasmentioning

confidence: 94%

Urban Governance Structure and Wage Disparities across US Metropolitan Areas

2016

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This paper analyses the determinants of spatial wage disparities in the US context for the period 1980-2000. Agglomeration benefits are estimated based on city productivity premia which are computed after controlling for the skills distribution among metropolitan areas as well as industry fixed effects. The drivers of productivity differentials that are taken into consideration are the size of the local economy, the spatial interactions among local autonomous economic systems and the structure of urban governance as well as the policy responses to the fragmentation issue. A metropolitan area with ten percentage more administrative units than another of the same size, experiences wages that are between 2.0% and 3.0% lower. The presence of a voluntary governance body is found to mitigate the problem of fragmentation only marginally, while the existence of special purpose districts have a negative impact on regional productivity. The implementation of a metropolitan government with a regional tax system is expected to increase productivity by around 6%.

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Section: Productivity Differences Across Us Msasmentioning

confidence: 94%

Urban Governance Structure and Wage Disparities across US Metropolitan Areas

2016

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“…Though obvious, this insight has been neglected, mainly because it is hard to model. Analyzing non‐trivial location patterns where multiple industries can sort across multiple locations is an inherently difficult problem (Behrens and Robert‐Nicoud , Gaubert ). The problem is made difficult by the fact that both the sizes and the composition of locations are endogenous, whereas productivity depends on both of these variables.…”

Section: Coagglomeration: Theory Measurement and Evidencementioning

confidence: 99%

“…First, in parts (a) and (a') of figure , I will briefly discuss “economic proximity” and “geographic proximity” and put those concepts into operation. I have briefly discussed before what the mechanisms of economic proximity could be and how they operate (see Duranton and Puga and Behrens and Robert‐Nicoud for surveys). I addressed defining and measuring geographic proximity in sections and for the specific case of coagglomeration of industry pairs.…”

Section: Putting Coagglomeration To Usementioning

confidence: 99%

Agglomeration and clusters: Tools and insights from coagglomeration patterns

Behrens

2016

Canadian J of Economics

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“…Larger cities are more unequal (Baum‐Snow & Pavan, ; Glaeser, Resseger & Tobio ). The size elasticity of the Gini coefficient of income is, for example, 1.7 percent for the 507 largest U.S. metropolitan areas (Behrens & Robert‐Nicoud, , ).…”

Section: Introductionmentioning

confidence: 99%

“…Behrens et al. () and Behrens and Robert‐Nicoud () document that the share of self‐employed—a fairly standard proxy for entrepreneurship (see Glaeser & Kerr, )—is roughly constant across a sample of 276 U.S. metropolitan statistical areas (MSA) in the 2000 U.S. Census data. The left panel of Figure shows that there is virtually no correlation between city size and the share of self‐employed.…”

Section: Introductionmentioning

confidence: 99%

Market size, occupational self‐selection, sorting, and income inequality

Behrens

Pokrovsky

Zhelobodko

2017

Journal of Regional Science

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We develop a monopolistic competition model with heterogeneous agents who self‐select into occupations (entrepreneurs and workers) depending on innate ability. The effect of market size on the equilibrium occupational structure crucially hinges on properties of the lower tier utility function—its scale elasticity and relative love‐for‐variety. When combined with the underlying ability distribution, the share of entrepreneurs and income inequality can increase or decrease with market size. When extended to allow for the endogenous sorting of mobile agents between cities, numerical examples suggest that sorting may increase inequality within and between cities.

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Agglomeration Theory with Heterogeneous Agents

Cited by 90 publications

References 123 publications

Urban Governance Structure and Wage Disparities across US Metropolitan Areas

Urban Governance Structure and Wage Disparities across US Metropolitan Areas

Agglomeration and clusters: Tools and insights from coagglomeration patterns

Market size, occupational self‐selection, sorting, and income inequality

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