Micro-Foundations of Urban Agglomeration Economies

Duranton, Gilles; Puga, Diego

doi:10.3386/w9931

Cited by 1,072 publications

(1,324 citation statements)

References 154 publications

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“…An example for time-invariant instruments is given in Ciccone and Hall (1996), who study the e¤ect of density by using historical population as an instrument. Combes et al (2008), Duranton and Puga (2004), and Glaeser and Gottlieb (2009) provide a more general discussion of spatial concentration and productivity. An example of an analysis of agglomeration forces in China is Combes et al (2013), who use Chinese household survey data.…”

Section: Population and Population Densitymentioning

confidence: 99%

Economic Reforms and Industrial Policy in a Panel of Chinese Cities

2013

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We study the effect of place-based industrial policy on economic development, focusing on the establishment of Special Economic Zones (SEZ) in China. We use data from a panel of Chinese (prefecture-level) cities from 1988 to 2010. Our difference-in-difference estimation exploits the variation in the establishment of SEZ across time and space. We find that the establishment of a state-level SEZ is associated with an increase in the level of GDP of about 20 %. This finding is confirmed with alternative specifications and in a sub-sample of inland provinces, where the selection of cities to host the zones was based on administrative criteria. The main channel is a positive effect on physical capital accumulation, although SEZ also have a positive effect on total factor productivity and human capital investments. We also investigate whether there are spillover effects of SEZ on neighboring regions or cities further away. We find positive and often significant spillover effects. AbstractWe study the e¤ect of place-based industrial policy on economic development, focusing on the establishment of Special Economic Zones (SEZ) in China. We use data from a panel of Chinese (prefecture-level) cities from 1988 to 2010. Our di¤erence-in-di¤erence estimation exploits the variation in the establishment of SEZ across time and space. We …nd that the establishment of a state-level SEZ is associated with an increase in the level of GDP of about 20%. This …nding is con…rmed with alternative speci…cations and in a sub-sample of inland provinces, where the selection of cities to host the zones was based on administrative criteria. The main channel is a positive e¤ect on physical capital accumulation, although SEZ also have a positive e¤ect on total factor productivity and human capital investments. We also investigate whether there are spillover e¤ects of SEZ on neighboring regions or cities further away. We …nd positive and often signi…cant spillover e¤ects.JEL Codes. H72, L52, O25, O38, O53, P21, R11.

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Section: Population and Population Densitymentioning

confidence: 99%

Economic Reforms and Industrial Policy in a Panel of Chinese Cities

2013

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“…qualified labour) used in the production of innovative products and/or services. A key factor is that both informal and formal knowledge spillovers among all actors and stakeholders occur in these regions and cities (Jacobs, 1969;Duranton and Puga, 2003), thus creating sustainable economic development and growth (Porter, 2002).…”

Section: Innovative Firms As Complex Carriers Of a Creative Economymentioning

confidence: 99%

High Performance in Complex Spatial Systems: A Self-Organizing Mapping Approach with Reference to the Netherlands

Kourtit

Arribas‐Bel²,

Nijkamp³

2013

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

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“…Krugman models [7,20] include consumer preference for product diversity, economies of scale, transportation costs, population density, and the share of the population employed in manufacturing as determining factors of city size. A recent survey by Duranton and Puga [2] shows different types of externalities that have been modelled by researchers to explain urban agglomeration.…”

Section: Literature Reviewmentioning

confidence: 99%

“…With increasing urbanization and growing concerns about environment, the concepts and the models of equilibrium, optimum, efficient, and sustainable city have been revised, re-visited, and extended in the recent years [1][2][3][4]. Different variations of the two well-known streams of city size models -the urban hierarchy model (also known as the central place theory) and the differentiated plane model (which predicts urban concentration at the points where the scarce transportation routes cross) -can be found in the literature [5].…”

Section: Introductionmentioning

confidence: 99%

Equilibrium and Optimum City Size with the Presence of Pollution

Dewan¹

2011

TOUSJ

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This paper attempts to find the equilibrium and the optimum size of a monocentric open city that produces a constant return to scale good and a group of differentiated goods and services (increasing return to scale goods and services), where the production of goods and services causes negative externalities (pollution). The model in this paper also assumes the presence of positive externalities of agglomeration (agglomeration economies). As it is an open city, there will be too much agglomeration in the absence of any penalty on the polluters. The results of this paper show that if the city dwellers value environmental quality the market outcomes are sub-optimal. Therefore, a tax scheme is necessary for the correct level of agglomeration or the optimum size of the city. The optimal tax rate in the differentiated goods and services sector depends on the emission intensity of output, consumer preference for product diversity, demand for labour (or level of output), and the wage rate; and that in the constant return to scale good sector depends on the emission intensity of output, average labour productivity, and the wage rate.

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Micro-Foundations of Urban Agglomeration Economies

Cited by 1,072 publications

References 154 publications

Economic Reforms and Industrial Policy in a Panel of Chinese Cities

Economic Reforms and Industrial Policy in a Panel of Chinese Cities

High Performance in Complex Spatial Systems: A Self-Organizing Mapping Approach with Reference to the Netherlands

Equilibrium and Optimum City Size with the Presence of Pollution

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