IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkwp/1289.html
   My bibliography  Save this paper

Commuting, externalities, and the geographical sizes of metropolitan areas

Author

Listed:
  • Bode, Eckhardt

Abstract

The paper proposes an econometric approach for quantifying jointly the geographical scope of commuting as well as the various forms of agglomeration economies originating from metropolitan centers. Adopting an urban economics perspective, and using land prices to measure their aggregate effects, the approach estimates the geographical reach of commuting and urban externalities from a hierarchical system of gradient functions. The results for West German NUTS3 regions indicate that metropolitan areas may be larger than suggested by MSA classifications based on commuting only. Metropolitan subcenters are found to enlarge metropolitan areas significantly.

Suggested Citation

  • Bode, Eckhardt, 2006. "Commuting, externalities, and the geographical sizes of metropolitan areas," Kiel Working Papers 1289, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1289
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/3860/1/kap1289.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fujita, Masahisa & Krugman, Paul, 1995. "When is the economy monocentric?: von Thunen and Chamberlin unified," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 505-528, August.
    2. Henderson, Vernon & Mitra, Arindam, 1996. "The new urban landscape: Developers and edge cities," Regional Science and Urban Economics, Elsevier, vol. 26(6), pages 613-643, December.
    3. Abdel-Rahman, Hesham M. & Anas, Alex, 2004. "Theories of systems of cities," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 52, pages 2293-2339, Elsevier.
    4. Pines,David & Sadka,Efraim & Zilcha,Itzhak (ed.), 1998. "Topics in Public Economics," Cambridge Books, Cambridge University Press, number 9780521561365.
    5. Steven Brakman & Harry Garretsen & Marc Schramm, 2004. "The Spatial Distribution of Wages: Estimating the Helpman‐Hanson Model for Germany," Journal of Regional Science, Wiley Blackwell, vol. 44(3), pages 437-466, August.
    6. Marcus Berliant & Ping Wang, 2005. "Dynamic Urban Models: Agglomeration and Growth," Contributions to Economic Analysis, in: Urban Dynamics and Growth: Advances in Urban Economics, pages 533-581, Emerald Group Publishing Limited.
    7. Luc Anselin & Attila Varga & Zoltan Acs, 2008. "Local Geographic Spillovers Between University Research and High Technology Innovations," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 9, pages 95-121, Edward Elgar Publishing.
    8. Audretsch, David B. & Feldman, Maryann P., 2004. "Knowledge spillovers and the geography of innovation," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 61, pages 2713-2739, Elsevier.
    9. Glaeser, Edward L. & Kahn, Matthew E., 2004. "Sprawl and urban growth," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 56, pages 2481-2527, Elsevier.
    10. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
    11. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
    12. Combes, Pierre-Philippe & Overman, Henry G., 2004. "The spatial distribution of economic activities in the European Union," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 64, pages 2845-2909, Elsevier.
    13. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens iii, 2009. "Firm Fragmentation And Urban Patterns," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 143-186, February.
    14. Berliant, Marcus & Peng, Shin-Kun & Wang, Ping, 2002. "Production Externalities and Urban Configuration," Journal of Economic Theory, Elsevier, vol. 104(2), pages 275-303, June.
    15. Genevieve Giuliano & Kenneth A. Small, 1993. "Is the Journey to Work Explained by Urban Structure?," Urban Studies, Urban Studies Journal Limited, vol. 30(9), pages 1485-1500, November.
    16. Katrin Rehdanz & David Maddison, 2004. "The Amenity Value of Climate to German Households," Discussion Papers of DIW Berlin 414, DIW Berlin, German Institute for Economic Research.
    17. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117, Elsevier.
    18. S. Brakman & H Garretsen & M. Schramm, 2003. "The Strategic Bombing of German Cities during World War II and its Impact for Germany," Working Papers 03-09, Utrecht School of Economics.
    19. Davis, James C. & Henderson, J. Vernon, 2008. "The agglomeration of headquarters," Regional Science and Urban Economics, Elsevier, vol. 38(5), pages 445-460, September.
    20. Henderson, J. Vernon & Ono, Yukako, 2008. "Where do manufacturing firms locate their headquarters?," Journal of Urban Economics, Elsevier, vol. 63(2), pages 431-450, March.
    21. Anas, Alex & Xiong, Kai, 2005. "The formation and growth of specialized cities: efficiency without developers or Malthusian traps," Regional Science and Urban Economics, Elsevier, vol. 35(4), pages 445-470, July.
    22. John F. McDonald & Paul J. Prather, 1994. "Suburban Employment Centres: The Case of Chicago," Urban Studies, Urban Studies Journal Limited, vol. 31(2), pages 201-218, March.
    23. Daniel P. McMillen, 2003. "Spatial Autocorrelation Or Model Misspecification?," International Regional Science Review, , vol. 26(2), pages 208-217, April.
    24. Bade, Franz-Josef & Niebuhr, Annekatrin & Schonert, Matthias, 2000. "Spatial Structural Change - Evidence and Prospects," Discussion Paper Series 26157, Hamburg Institute of International Economics.
    25. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
    26. Miyao, Takahiro, 1987. "Dynamic urban models," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 22, pages 877-925, Elsevier.
    27. Sylvie Charlot & Gilles Duranton, 2006. "Cities and Workplace Communication: Some Quantitative French Evidence," Urban Studies, Urban Studies Journal Limited, vol. 43(8), pages 1365-1394, July.
    28. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-656, September.
    29. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455.
    30. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 377-393, May.
    31. Edward L. Glaeser & Janet E. Kohlhase, 2004. "Cities, regions and the decline of transport costs," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 197-228, Springer.
    32. Dohse, Dirk & Krieger-Boden, Christiane & Sander, Birgit & Soltwedel, Rüdiger, 2002. "Vom Mangel zum Überfluss - der ostdeutsche Wohnungsmarkt in der Subventionsfalle," Kiel Discussion Papers 395, Kiel Institute for the World Economy (IfW Kiel).
    33. Eckhardt Bode, 2004. "The spatial pattern of localized R&D spillovers: an empirical investigation for Germany," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 43-64, January.
    34. Moretti, Enrico, 2004. "Human capital externalities in cities," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 51, pages 2243-2291, Elsevier.
    35. Patricia Rice & Anthony Venables, 2003. "Equilibrium Regional Disparities: Theory and British Evidence," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 675-686.
    36. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    37. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    38. Craig, Steven G. & Ng, Pin T., 2001. "Using Quantile Smoothing Splines to Identify Employment Subcenters in a Multicentric Urban Area," Journal of Urban Economics, Elsevier, vol. 49(1), pages 100-120, January.
    39. McMillen, Daniel P. & Smith, Stefani C., 2003. "The number of subcenters in large urban areas," Journal of Urban Economics, Elsevier, vol. 53(3), pages 321-338, May.
    40. Bade, Franz-Josef & Laaser, Claus-Friedrich & Soltwedel, Rüdiger, 2004. "Urban specialization in the internet age: Empirical findings for Germany," Kiel Working Papers 1215, Kiel Institute for the World Economy (IfW Kiel).
    41. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
    42. Wheaton, William C., 2004. "Commuting, congestion, and employment dispersal in cities with mixed land use," Journal of Urban Economics, Elsevier, vol. 55(3), pages 417-438, May.
    43. McMillen, Daniel P., 2001. "Nonparametric Employment Subcenter Identification," Journal of Urban Economics, Elsevier, vol. 50(3), pages 448-473, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Reggiani, Aura & Bucci, Pietro & Russo, Giovanni & Haas, Anette & Nijkamp, Peter, 2011. "Regional labour markets and job accessibility in City Network systems in Germany," Journal of Transport Geography, Elsevier, vol. 19(4), pages 528-536.
    2. Giovanni Russo & Federico Tedeschi & Aura Reggiani & Peter Nijkamp, 2014. "Commuter Effects on Local Labour Markets: A German Modelling Study," Urban Studies, Urban Studies Journal Limited, vol. 51(3), pages 493-508, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eckhardt Bode, 2008. "Delineating Metropolitan Areas Using Land Prices," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 131-163, February.
    2. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    3. Stef Proost & Jacques-François Thisse, 2019. "What Can Be Learned from Spatial Economics?," Journal of Economic Literature, American Economic Association, vol. 57(3), pages 575-643, September.
    4. Berliant, Marcus & Wang, Ping, 2008. "Urban growth and subcenter formation: A trolley ride from the Staples Center to Disneyland and the Rose Bowl," Journal of Urban Economics, Elsevier, vol. 63(2), pages 679-693, March.
    5. Behrens, Kristian & Robert-Nicoud, Frédéric, 2015. "Agglomeration Theory with Heterogeneous Agents," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 171-245, Elsevier.
    6. Ajay Agarwal & Genevieve Giuliano & Christian Redfearn, 2012. "Strangers in our midst: the usefulness of exploring polycentricity," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 433-450, April.
    7. Frederic Gilli, 2009. "Sprawl or Reagglomeration? The Dynamics of Employment Deconcentration and Industrial Transformation in Greater Paris," Urban Studies, Urban Studies Journal Limited, vol. 46(7), pages 1385-1420, June.
    8. Bumsoo Lee, 2006. "'Edge' or 'Edgeless Cities'? Urban Spatial Structure in US Metropolitan Areas, 1980 to 2000," Working Paper 8574, USC Lusk Center for Real Estate.
    9. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    10. Garcia-López, Miquel-Àngel & Hémet, Camille & Viladecans-Marsal, Elisabet, 2017. "Next train to the polycentric city: The effect of railroads on subcenter formation," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 50-63.
    11. Duranton, Gilles & Puga, Diego, 2015. "Urban Land Use," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 467-560, Elsevier.
    12. Cavailhes, Jean & Gaigne, Carl & Tabuchi, Takatoshi & Thisse, Jacques-Francois, 2007. "Trade and the structure of cities," Journal of Urban Economics, Elsevier, vol. 62(3), pages 383-404, November.
    13. McMillen, Daniel P. & Smith, Stefani C., 2003. "The number of subcenters in large urban areas," Journal of Urban Economics, Elsevier, vol. 53(3), pages 321-338, May.
    14. Jaume Masip Tresserra, 2012. "Identifying the Employment and Population Centers at regional and metropolitan scale: The Case of Catalonia and Barcelona," ERSA conference papers ersa12p70, European Regional Science Association.
    15. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    16. Behrens, Kristian & Mion, Giordano & Murata, Yasusada & Suedekum, Jens, 2017. "Spatial frictions," Journal of Urban Economics, Elsevier, vol. 97(C), pages 40-70.
    17. Kantor, Yuval & Rietveld, Piet & van Ommeren, Jos, 2014. "Towards a general theory of mixed zones: The role of congestion," Journal of Urban Economics, Elsevier, vol. 83(C), pages 50-58.
    18. Stephen J. Redding, 2013. "Economic Geography: A Review of the Theoretical and Empirical Literature," Palgrave Macmillan Books, in: Daniel Bernhofen & Rod Falvey & David Greenaway & Udo Kreickemeier (ed.), Palgrave Handbook of International Trade, chapter 16, pages 497-531, Palgrave Macmillan.
    19. Stephen J. Redding & Esteban Rossi-Hansberg, 2017. "Quantitative Spatial Economics," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 21-58, September.
    20. Fu, Shihe, 2007. "Smart Cafe Cities: Testing human capital externalities in the Boston metropolitan area," Journal of Urban Economics, Elsevier, vol. 61(1), pages 86-111, January.

    More about this item

    Keywords

    Commuting; Agglomeration economies; Land price gradient; Urban fringe; Germany; Urban economics;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkwp:1289. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.