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What makes cities bigger and richer? Evidence from 1990-2000 in the US

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Author Info
González-Val, Rafael

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Abstract

This paper analyses the determinants of growth of American cities, understood as growth of the population or per capita income, from 1990 to 2000. This empirical analysis uses data from all cities with no size restriction (our sample contains data for 21,655 cities). The results show that while population growth in cities appears to be independent of initial size, the growth of city per capita income is negatively correlated to initial per capita income: the richest cities grew less in this period. To try to explain these differentiated behaviors, we examine the relationship between urban characteristics in 1990 and city growth (both in population and in per capita income) using a Multinomial Logit Model. The geographical situation of cities seems to play a key role in their growth.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15636.

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Date of creation: 09 Jun 2009
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Handle: RePEc:pra:mprapa:15636

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Related research
Keywords: City growth; Multinomial logit;

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Find related papers by JEL classification:
R00 - Urban, Rural, and Regional Economics - - General - - - General
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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  1. Small, Kenneth A & Hsiao, Cheng, 1985. "Multinomial Logit Specification Tests," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(3), pages 619-27, October. [Downloadable!] (restricted)
  2. Andrew Young & Matthew Higgins & Daniel Levy, 2005. "Sigma-Convergence Versus Beta-Convergence: Evidence from U.S. County-Level Data," Macroeconomics 0505008, EconWPA. [Downloadable!]
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  3. Kris James Mitchener & Ian W. McLean, 2003. "The Productivity of U.S. States Since 1880," NBER Working Papers 9445, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Edward L. Glaeser & Jose A. Scheinkman & Andrei Shleifer, 1995. "Economic Growth in a Cross-Section of Cities," NBER Working Papers 5013, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Mitchener, Kris James & McLean, Ian W, 2003. " The Productivity of US States since 1880," Journal of Economic Growth, Springer, vol. 8(1), pages 73-114, March. [Downloadable!] (restricted)
  6. Quigley, John M, 1998. "Urban Diversity and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 127-38, Spring. [Downloadable!] (restricted)
  7. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December. [Downloadable!] (restricted)
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    • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Loury, Glenn C, 1979. "Market Structure and Innovation," The Quarterly Journal of Economics, MIT Press, vol. 93(3), pages 395-410, August. [Downloadable!] (restricted)
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  9. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-90, October. [Downloadable!] (restricted)
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  10. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-40, September. [Downloadable!] (restricted)
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  11. Luis Garicano & Esteban Rossi-Hansberg, 2006. "Organization and Inequality in a Knowledge Economy," The Quarterly Journal of Economics, MIT Press, vol. 121(4), pages 1383-1435, November. [Downloadable!] (restricted)
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