How polycentric is a monocentric city? The role of agglomeration economies
AbstractCan the demise of the monocentric economy across cities during the 20th century be explained by decreasing transport costs to the city center or are other fundamental forces at work? Taking a hybrid perspective of classical bid-rent theory and a world where clustering of economic activity is driven by (knowledge) spillovers, Berlin, Germany, from 1890 to 1936 serves as a case in point. We assess the extent to which firms in an environment of decreasing transport costs and industrial transformation face a trade-off between distance to the CBD and land rents and how agglomeration economies come into play in shaping their location decisions. Our results suggest that an observable flattening of the traditional distance to the CBD gradient may mask the emergence of significant agglomeration economies, especially within predominantly service-based inner city districts.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 24078.
Date of creation: Jul 2010
Date of revision:
Transport Innovations; Land Values; Location Productivity; Agglomeration Economies; Economic History; Berlin;
Other versions of this item:
- Nicolai Wendland, 2011. "How Polycentric is a Monocentric City? The Role of Agglomeration Economies," ERSA conference papers ersa11p218, European Regional Science Association.
- Gabriel M. Ahlfeldt & Nicolai Wendland, 2010. "How Polycentric is a Monocentric City? The Role of Agglomeration Economies," EERI Research Paper Series EERI_RP_2010_24, Economics and Econometrics Research Institute (EERI), Brussels.
- N9 - Economic History - - Regional and Urban History
- N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
- R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-31 (All new papers)
- NEP-GEO-2010-07-31 (Economic Geography)
- NEP-HIS-2010-07-31 (Business, Economic & Financial History)
- NEP-URE-2010-07-31 (Urban & Real Estate Economics)
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