Agglomeration, Accessibility, and Productivity: Evidence for Urbanized Areas in the US
AbstractThis paper undertakes an empirical analysis with the aim of improving the current understanding of the relationship between labor productivity and urban agglomeration economies across a sample of urbanized areas in the US. Agglomeration economies are represented with driving time measures of employment accessibility to establish a direct account for the link between transport and agglomeration economies. The paper investigates the presence of nonlinearities in the relationship between labor productivity and agglomeration economies, and examines the spatial decay pattern of the effects arising from this relationship. The findings indicate that there is considerable nonlinearity in the relation between productivity and transport induced agglomeration effects, implying that the estimation of country-level aggregate elasticities is likely to misrepresent the actual magnitude of any productivity gains from urban agglomeration. The results also suggest that the magnitude of the productivity-agglomeration effects decays very rapidly with time and is very strong within 20 minutes driving time. This suggests that knowledge spillover externalities are likely to be a very important Marshallian source of agglomeration economies.
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Bibliographic InfoPaper provided by University of Minnesota: Nexus Research Group in its series Working Papers with number 000104.
Date of creation: 2012
Date of revision:
Publication status: Published in working paper
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agglomeration economies; network accessibility; labor productivity;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-08-23 (All new papers)
- NEP-EFF-2012-08-23 (Efficiency & Productivity)
- NEP-GEO-2012-08-23 (Economic Geography)
- NEP-LMA-2012-08-23 (Labor Markets - Supply, Demand, & Wages)
- NEP-URE-2012-08-23 (Urban & Real Estate Economics)
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- David, Martín-Barroso & Juan Andres, Nuñez & Francisco J., Velazquez, 2013. "The efect on firms' Productivity of accessibility. The Spanish manufacturung sector," MPRA Paper 45842, University Library of Munich, Germany.
- David MartÃn-Barroso & Juan A. NÃºÃ±ez & Francisco J. VelÃ¡zquez, 2013. "The Effect On Firms? Productivity Of Accessibility. The Spanish Manufacturing Sector," ERSA conference papers ersa13p1123, European Regional Science Association.
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