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Empirical estimation of agglomeration economies associated with research facilities

  • Geoffrey Black
  • John Church
  • Donald Holley
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    This research employs a new technique to estimate agglomeration economies, which are omitted from standard Input-Output (I-O) models. The overall economic impact of an economic entity includes the direct and indirect impacts as well as the agglomeration economies. I-O analysis is employed to assess the direct and indirect economic impacts of a research facility. The overall economic impact is estimated by employing a demographic projection model that estimates employment, population, and income in the region without the facility's contribution to the economic landscape. The difference between the overall economic impact and the direct and indirect impacts are attributed to the agglomeration effects of the facility. The findings indicate that agglomeration economies are significant part of the overall economic impact. Copyright International Atlantic Economic Society 2004

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    File URL: http://hdl.handle.net/10.1007/BF02304237
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    Article provided by International Atlantic Economic Society in its journal Atlantic Economic Journal.

    Volume (Year): 32 (2004)
    Issue (Month): 4 (December)
    Pages: 320-328

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    Handle: RePEc:kap:atlecj:v:32:y:2004:i:4:p:320-328
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    1. Gilles Duranton & Diego Puga, 2001. "Nursery Cities: Urban Diversity, Process Innovation, and the Life Cycle of Products," American Economic Review, American Economic Association, vol. 91(5), pages 1454-1477, December.
    2. M. Henry Robison, 1997. "Community input-output models for rural area analysis with an example from central Idaho," The Annals of Regional Science, Springer, vol. 31(3), pages 325-351.
    3. Fujita, Masahisa & Hamaguchi, Nobuaki, 2001. "Intermediate goods and the spatial structure of an economy," Regional Science and Urban Economics, Elsevier, vol. 31(1), pages 79-109, February.
    4. Edward L. Glaeser, Jed Kolko, and Albert Saiz, 2001. "Consumer city," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 27-50, January.
    5. Gerald A. Carlino, 1987. "Productivity in cities: does city size matter?," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 3-12.
    6. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-49, August.
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