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Empirical estimation of agglomeration economies associated with research facilities

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  • Geoffrey Black
  • John Church
  • Donald Holley

Abstract

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

Suggested Citation

  • Geoffrey Black & John Church & Donald Holley, 2004. "Empirical estimation of agglomeration economies associated with research facilities," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(4), pages 320-328, December.
    • Handle: RePEc:kap:atlecj:v:32:y:2004:i:4:p:320-328
    DOI: 10.1007/BF02304237
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