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Agglomeration economies: the spark that ignites a city?

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  • Satyajit Chatterjee

Abstract

In "Agglomeration Economies: The Spark That Ignites a City?" Satyajit Chatterjee discusses his research, which questions this belief. He finds that while agglomeration economies are important, they're not the most important factor in the spatial concentration of employment. The combined effects of factors unrelated to agglomeration economies, such as the availability of natural resources and local economic policies, appear to account for the bulk of the spatial concentration of U.S. employment.

Suggested Citation

  • Satyajit Chatterjee, 2003. "Agglomeration economies: the spark that ignites a city?," Business Review, Federal Reserve Bank of Philadelphia, issue Q4, pages 6-13.
  • Handle: RePEc:fip:fedpbr:y:2003:i:q4:p:6-13
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    File URL: http://www.phil.frb.org/files/br/brq403sc.pdf
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    References listed on IDEAS

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    1. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
    2. Gerald A. Carlino & Satyajit Chatterjee & Robert M. Hunt, 2001. "Knowledge spillovers and the new economy of cities," Working Papers 01-14, Federal Reserve Bank of Philadelphia.
    3. Thomas J. Holmes, 1996. "The effects of state policies on the location of industry: evidence from state borders," Staff Report 205, Federal Reserve Bank of Minneapolis.
    4. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 577-598.
    5. No authors listed, 2001. "New Economy," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 27(1), pages 1-1.
    6. Chatterjee, Satyajit & Carlino, Gerald A., 2001. "Aggregate metropolitan employment growth and the deconcentration of metropolitan employment," Journal of Monetary Economics, Elsevier, vol. 48(3), pages 549-583, December.
    7. Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-350, August.
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    Cited by:

    1. Gerald A. Carlino, 2011. "Three keys to the city: resources, agglomeration economies, and sorting," Business Review, Federal Reserve Bank of Philadelphia, issue Q3, pages 1-13.
    2. Jeffrey Lin, 2011. "Urban productivity advantages from job search and matching," Business Review, Federal Reserve Bank of Philadelphia, issue Q1, pages 9-16.
    3. Jeffrey Lin, 2012. "Geography, history, economies of density, and the location of cities," Business Review, Federal Reserve Bank of Philadelphia, issue Q3, pages 18-24.

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    Keywords

    Employment (Economic theory);

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