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Growth in Cities

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  • Glaeser, Edward Ludwig
  • Kallal, Hedi D.
  • Scheinkman, Jose A.
  • Shleifer, Andrei

Abstract

Recent theories of economic growth, including those of Romer, Porter, and Jacobs, have stressed the role of technological spillovers in generating growth. Because such knowledge spillovers are particularly effective in cities, where communication between people is more extensive, data on the growth of industries in different cities allow us to test some of these theories. Using a new data set on the growth of large industries in 170 U.S. cities between 1956 and 1987, we find that local competition and urban variety, but not regional specialization, encourage employment growth in industries. The evidence suggests that important knowledge spillovers might occur between rather than within industries, consistent with the theories of Jacobs.

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Bibliographic Info

Paper provided by Harvard University Department of Economics in its series Scholarly Articles with number 3451309.

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Date of creation: 1992
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Publication status: Published in Journal of Political Economy -Chicago-
Handle: RePEc:hrv:faseco:3451309

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  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  2. Steve J. Davis & John Haltiwanger, 1991. "Gross Job Creation, Gross Job Destruction and Employment Reallocation," NBER Working Papers 3728, National Bureau of Economic Research, Inc.
  3. Diamond, Charles A & Simon, Curtis J, 1990. "Industrial Specialization and the Returns to Labor," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 175-201, April.
  4. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
  5. Julio J. Rotemberg & Garth Saloner, 1990. "Competition and Human Capital Accumulation: A Theory of Interregional Specialization and Trade," NBER Working Papers 3228, National Bureau of Economic Research, Inc.
  6. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  7. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1988. "Industrialization and the Big Push," NBER Working Papers 2708, National Bureau of Economic Research, Inc.
  8. Paul Krugman, 1991. "Cities in Space: Three Simple Models," NBER Working Papers 3607, National Bureau of Economic Research, Inc.
  9. Paul Romer, 1991. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The Growth of Cities: A Formal Model
    by Peter Klein in Organizations and Markets on 2007-04-24 02:10:07
  2. Ed Glaeser's "Triumph of the City" is Published!
    by Matthew E. Kahn in Environmental and Urban Economics on 2011-02-10 15:15:00
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