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The Identification of Agglomeration Economies

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  • Pierre-Philippe Combes

    ()
    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579)

  • Gilles Duranton

    (Department of Economics - University of Toronto)

  • Laurent Gobillon

    ()
    (INED - INED)

Abstract

Measures of urban productivity are typically positively associated with city population. But is this relationship causal? We discuss the main sources of bias in the proper identification of agglomeration effects. We also assess a variety of solutions that have been proposed in the literature to deal with them.

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Bibliographic Info

Paper provided by HAL in its series Working Papers with number halshs-00535593.

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Date of creation: 12 Nov 2010
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Handle: RePEc:hal:wpaper:halshs-00535593

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Keywords: agglomeration economies; instrumental variables; structural estimation; natural experiments;

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