volume 135, issue 4, P2059-2133 2020
DOI: 10.1093/qje/qjaa014
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Stephan Heblich,
Stephen J Redding,
Daniel M Sturm

Abstract: Abstract Using newly constructed spatially disaggregated data for London from 1801 to 1921, we show that the invention of the steam railway led to the first large-scale separation of workplace and residence. We show that a class of quantitative urban models is remarkably successful in explaining this reorganization of economic activity. We structurally estimate one of the models in this class and find substantial agglomeration forces in both production and residence. In counterfactuals, we find …

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