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Urban Evolutions: The Fast, the Slow, and the Still

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  • Gilles Duranton

Abstract

With the use of French and US data, new and systematic evidence is provided about the rapid location changes of industries across cities (the fast). Cities are also slowly moving up and down the urban hierarchy (the slow), while the size distribution of cities is skewed to the right and very stable (the still). The model proposed here reproduces these three features. Small, innovation-driven shocks lead to the churning of industries across cities. Then, cities slowly grow or decline following net gains or losses of industries. These changes occur within a stable distribution. The quantitative implications of the model are also explored. (JEL R12, R32)

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.97.1.197
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File URL: http://www.aeaweb.org/aer/data/mar07/20050827_data.zip
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 97 (2007)
Issue (Month): 1 (March)
Pages: 197-221

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Handle: RePEc:aea:aecrev:v:97:y:2007:i:1:p:197-221

Note: DOI: 10.1257/aer.97.1.197
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  1. Carlino, Gerald A. & DeFina, Robert H. & Sill, Keith, 2001. "Sectoral Shocks and Metropolitan Employment Growth," Journal of Urban Economics, Elsevier, vol. 50(3), pages 396-417, November.
  2. Marcus Berliant & Ping Wang, 2004. "Dynamic Urban Models: Agglomeration and Growth," Urban/Regional 0404006, EconWPA.
  3. Pierre-Philippe Combes & Thierry Magnac & Jean-Marc Robin, 2003. "The Dynamics of Local Employment in France," Working Papers 2003-15, Centre de Recherche en Economie et Statistique.
  4. Coulson, N. Edward, 1999. "Sectoral sources of metropolitan growth," Regional Science and Urban Economics, Elsevier, vol. 29(6), pages 723-743, November.
  5. BARRIOS, Salvador & BERTINELLI, Luisito & STROBL, Eric & TEIXEIRA, Antonio Carlos, 2004. "The dynamics of agglomeration : evidence from Ireland and Portugal," CORE Discussion Papers 2004010, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  7. Pierre-Philippe Combes & Thierry Magnac & Jean-Marc Robin, 2004. "The dynamics of local employment in France," Working Papers 155391, Institut National de la Recherche Agronomique, France.
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