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The Costs of Agglomeration: Land Prices in French Cities

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  • Pierre-Philippe Combes

    ()
    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS.)

  • Gilles Duranton

    (University of Pennsylvania)

  • Laurent Gobillon

    (http://www.amse-aixmarseille.fr/sites/default/files/_dt/2012/wp_2012_-_nr_35.pdf)

Abstract

We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French land price data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.041. Our approach also yields a number of intermediate outputs of independent interest such as a distance gradient for land prices and the elasticity of unit land prices with respect to city population. For the latter, our preferred estimate is 0.72.

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Bibliographic Info

Paper provided by Aix-Marseille School of Economics, Marseille, France in its series AMSE Working Papers with number 1235.

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Length: 46 pages
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:aim:wpaimx:1235

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Web page: http://www.amse-aixmarseille.fr/en
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Keywords: urban costs; land prices; land use; agglomeration.;

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Citations

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Cited by:
  1. Duranton, Gilles & Puga, Diego, 2013. "The growth of cities," CEPR Discussion Papers 9590, C.E.P.R. Discussion Papers.
  2. Stephen J. Redding & Matthew A. Turner, 2014. "Transportation Costs and the Spatial Organization of Economic Activity," CEP Discussion Papers dp1277, Centre for Economic Performance, LSE.
  3. Pierre-Philippe Combes & Sylvie Démurger & Shi Li, 2013. "Urbanisation and Migration Externalities in China," AMSE Working Papers 1307, Aix-Marseille School of Economics, Marseille, France, revised 06 Feb 2013.
  4. Behrens, Kristian & Duranton, Gilles & Robert-Nicoud, Frédéric, 2010. "Productive cities: Sorting, selection and agglomeration," CEPR Discussion Papers 7922, C.E.P.R. Discussion Papers.
  5. Paul Beaudry & David A. Green & Benjamin M. Sand, 2013. "Spatial Equilibrium with Unemployment and Wage Bargaining: Theory and Estimation," NBER Working Papers 19118, National Bureau of Economic Research, Inc.

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