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Agglomeration-effects in Europe

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Abstract

The paper estimates agglomeration-effects for France, Germany, Italy, Spain, and the UK. Estimation takes into account endogeneity of the spatial distribution of employment and spatial fixed-effects. Empirical results suggest that agglomeration-effects in these European countries are only slightly smaller than agglomeration- effects in the US: the estimated elasticity of average- labor-productivity with respect to employment-density is 4.5 percent compared to 5 percent in the US.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/499.pdf
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Bibliographic Info

Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 499.

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Date of creation: Apr 1998
Date of revision: Aug 1999
Handle: RePEc:upf:upfgen:499

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Web page: http://www.econ.upf.edu/

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Keywords: Agglomeration; productivity;

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  1. Antonio Ciccone & Robert E. Hall, 1993. "Productivity and the Density of Economic Activity," NBER Working Papers 4313, National Bureau of Economic Research, Inc.
  2. Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-50, August.
  3. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, American Economic Association, vol. 64(4), pages 640-56, September.
  4. Sveikauskas, Leo A, 1975. "The Productivity of Cities," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 89(3), pages 393-413, August.
  5. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
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