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Geographic Concentration As A Dynamic Process

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Author Info
Guy Dumais
Glenn Ellison
Edward L. Glaeser

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Abstract

This paper uses data from the Census Bureau's Longitudinal Research Database to describe the dynamics of geographic concentration in U.S. manufacturing industries. Agglomeration results from a combination of the mean reversion and randomness in the growth of state-industry employment. Although industries' agglomeration levels have declined only slightly over the last quarter century, we find a great deal of movement for many geographically concentrated industries. We decompose aggregate concentration changes into portions attributable to plant births, expansions, contractions, and closures. We find that the location choices of new firms play a deagglomerating role, whereas plant closures have tended to reinforce agglomeration. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

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Publisher Info
Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 84 (2002)
Issue (Month): 2 (May)
Pages: 193-204
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Handle: RePEc:tpr:restat:v:84:y:2002:i:2:p:193-204

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Robert H Mcguckin & Suzanne Peck, 1992. "Manufacturing Establishments Reclassified Into New Industries: The Effect Of Survey Design Rules," Working Papers 92-14, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  2. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
  3. Crihfield, John B., 1990. "Manufacturing supply : A long-run, metropolitan view," Regional Science and Urban Economics, Elsevier, vol. 20(3), pages 327-349, November. [Downloadable!] (restricted)
  4. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "The Growth and Failure of U.S. Manufacturing Plants," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 671-98, November. [Downloadable!] (restricted)
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  5. Thomas J. Holmes, 1996. "The effects of state policies on the location of industry: evidence from state borders," Staff Report 205, Federal Reserve Bank of Minneapolis. [Downloadable!]
  6. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December. [Downloadable!] (restricted)
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    • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-49, August. [Downloadable!] (restricted)
  10. Davis, Steven J & Haltiwanger, John C, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 819-63, August. [Downloadable!] (restricted)
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  11. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932.
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