Productivity and Metropolitan Density
AbstractThis paper evaluates the relationship between urban productivity and density using data on metropolitan areas. This is an alternative measure of the urban economy to the one employed by Ciccone and Hall (1996), who use data on output and education by state and employment and education by county, which excludes agricultural and mining sectors. Instead, our U.S. metropolitan area data are defined contemporaneously for the five available census years from 1950 to 1990. These data allow us to conduct both cross-sectional and panel analyses. Furthermore, since we use a model where income is a linear function of density, these data allow us to evaluate the urban system in its own right. Our results replicate the key finding of Ciccone and Hall (1996): a doubling of population density leads to about a 6% increase in productivity. Our results establish an important role for Jacobs externalities, measured by metropolitan area population.
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Bibliographic InfoPaper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0016.
Date of creation: 2000
Date of revision:
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urban density; urban growth; urban productivity; Jacobs externalities; agglomeration externalities;
Find related papers by JEL classification:
- R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
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- Mihai Nica, 2004. "Geographical Concentration and Economic Growth: Do Externalities Matter?," Urban/Regional 0412002, EconWPA.
- Timothy F. Harris & Yannis M. Ioannides, 2000. "History versus Expectations: an Empirical Investigation," Discussion Papers Series, Department of Economics, Tufts University 0014, Department of Economics, Tufts University.
- Garcia-López, Miquel-Àngel, 2010. "Population suburbanization in Barcelona, 1991-2005: Is its spatial structure changing?," Journal of Housing Economics, Elsevier, vol. 19(2), pages 119-132, June.
- Lynne Pepall & Daniel Richards, 2000. "Merger Wars: Bidding for Complementary Assets," Discussion Papers Series, Department of Economics, Tufts University 0020, Department of Economics, Tufts University.
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