Advanced Search
MyIDEAS: Login

The Economics of Density: Evidence from the Berlin Wall

Contents:

Author Info

  • Gabriel M. Ahlfeldt
  • Stephen J. Redding
  • Daniel M. Sturm
  • Nikolaus Wolf

Abstract

This paper develops a quantitative model of city structure to separate agglomeration forces, dispersion forces and fundamentals as determinants of location choices. The model remains tractable and amenable to empirical analysis because of stochastic shocks to worker productivity, which yield a gravity equation for commuting flows. To empirically disentangle alternative determinants of location choices, we use Berlin's division and reunification as a source of exogenous variation in the surrounding concentration of economic activity. Using disaggregated data on land prices, workplace employment and residence employment for thousands of city blocks for 1936, 1986 and 2006, we find that the model can account both qualitatively and quantitatively for the observed changes in city structure.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.spatialeconomics.ac.uk/textonly/SERC/publications/download/sercdp0118.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0118.

as in new window
Length:
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:cep:sercdp:0118

Contact details of provider:
Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp

Related research

Keywords: Agglomeration; dispersion; density; cities;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Hoyt Bleakley & Jeffrey Lin., 2010. "Portage: path dependence and increasing returns in U.S. history," Working Papers 10-27, Federal Reserve Bank of Philadelphia.
  2. Guy Michaels, 2008. "The Effect of Trade on the Demand for Skill: Evidence from the Interstate Highway System," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 683-701, November.
  3. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-42, April.
  4. Gibbons, Stephen & Machin, Stephen, 2005. "Valuing rail access using transport innovations," Journal of Urban Economics, Elsevier, vol. 57(1), pages 148-169, January.
  5. Hanson, Gordon H, 1996. "Localization Economies, Vertical Organization, and Trade," American Economic Review, American Economic Association, vol. 86(5), pages 1266-78, December.
  6. Robert E. Hall & Charles I. Jones, . "The Productivity of Nations," Working Papers 96012, Stanford University, Department of Economics.
  7. Nathaniel Baum-Snow & Ronni Pavan, 2012. "Understanding the City Size Wage Gap," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 88-127.
  8. Dekle, Robert & Eaton, Jonathan, 1999. "Agglomeration and Land Rents: Evidence from the Prefectures," Journal of Urban Economics, Elsevier, vol. 46(2), pages 200-214, September.
  9. David Albouy, 2008. "Are Big Cities Bad Places to Live? Estimating Quality of Life across Metropolitan Areas," NBER Working Papers 14472, National Bureau of Economic Research, Inc.
  10. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, MIT Press, vol. 122(2), pages 775-805, 05.
  11. Hanson, Gordon H, 1997. "Increasing Returns, Trade and the Regional Structure of Wages," Economic Journal, Royal Economic Society, vol. 107(440), pages 113-33, January.
  12. Akos Valentinyi & Berthold Herrendorf, 2008. "Measuring Factor Income Shares at the Sector Level," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 820-835, October.
  13. Edward L. Glaeser & Jed Kolko & Albert Saiz, 2000. "Consumer City," Harvard Institute of Economic Research Working Papers 1901, Harvard - Institute of Economic Research.
  14. Stephen J. Redding & Daniel M. Sturm & Nikolaus Wolf, 2011. "History and Industry Location: Evidence from German Airports," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 814-831, August.
  15. repec:bla:restud:v:75:y:2008:i:4:p:1011-1038 is not listed on IDEAS
  16. Donald R. Davis & David E. Weinstein, 2008. "A Search For Multiple Equilibria In Urban Industrial Structure," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 29-65.
  17. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
  18. Mohammad Arzaghi & J. Vernon Henderson, 2008. "Networking off Madison Avenue," Review of Economic Studies, Oxford University Press, vol. 75(4), pages 1011-1038.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Burchardi, Konrad B. & Hassan, Tarek, 2011. "The Economic Impact of Social Ties: Evidence from German Reunification," CEPR Discussion Papers 8470, C.E.P.R. Discussion Papers.
  2. Kristian Behrens & Giordano Mion & Yasusada Murata & Jens Südekum, 2011. "Spatial Frictions," CEP Discussion Papers dp1108, Centre for Economic Performance, LSE.
  3. Möhlmann, Axel, 2013. "Persistence or Convergence? The East-West Tax Morale Gap in Germany," MPRA Paper 50766, University Library of Munich, Germany, revised 27 Jul 2013.
  4. Kline, Patrick & Moretti, Enrico, 2013. "Local Economic Development, Agglomeration Economies, and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority," CEPR Discussion Papers 9593, C.E.P.R. Discussion Papers.
  5. Head, Keith & Mayer, Thierry, 2013. "Gravity Equations: Workhorse, Toolkit, and Cookbook," CEPR Discussion Papers 9322, C.E.P.R. Discussion Papers.
  6. Gabriel Ahlfeldt, 2013. "Urbanity," CESifo Working Paper Series 4533, CESifo Group Munich.
  7. Nathaniel Baum-snow & Ronni Pavan, 2009. "Understanding the City Size Wage Gap," 2009 Meeting Papers 524, Society for Economic Dynamics.
  8. Stephen L. Ross & Xiaofang Dong, 2012. "Understanding the Internal Structure of Self-Organizing Cities," Working papers 2012-34, University of Connecticut, Department of Economics.
  9. Jeffrey C. Brinkman, 2013. "Congestion, agglomeration, and the structure of cities," Working Papers 13-25, Federal Reserve Bank of Philadelphia.
  10. Steven Brakman & Harry Garretsen & Charles van Marrewijk & Abdella Oumer, 2011. "The Positive Border Effect of EU Integration," CESifo Working Paper Series 3335, CESifo Group Munich.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cep:sercdp:0118. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.