IDEAS home Printed from https://ideas.repec.org/a/oup/jecgeo/v13y2013i1p53-83.html
   My bibliography  Save this article

How polycentric is a monocentric city? Centers, spillovers and hysteresis

Author

Listed:
  • Gabriel M. Ahlfeldt
  • Nicolai Wendland

Abstract

We assess the extent to which firms in an environment of decreasing transport costs and industrial transformation value the benefits of proximity to a historic central business district (CBD) and agglomeration economies in their location decisions. Taking a hybrid perspective of classical bid-rent theory and a world where clustering of economic activity is driven by between-firm spillovers, Berlin, Germany, from 1890 to 1936 serves as a case in point. Our results suggest that the average productivity effect of a doubling of between-firm spillovers over the study period increases from 3.5% to 8.3%. As the city transforms into a service-based economy, several micro-agglomerations emerge. Their locations close to the CBD still make the city look roughly monocentric. This is in line with a hysteresis effect in which second-nature geography drives the ongoing strength of a historic city center even though the importance of the originally relevant first-nature geography has vanished.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Gabriel M. Ahlfeldt & Nicolai Wendland, 2013. "How polycentric is a monocentric city? Centers, spillovers and hysteresis," Journal of Economic Geography, Oxford University Press, vol. 13(1), pages 53-83, January.
    • Handle: RePEc:oup:jecgeo:v:13:y:2013:i:1:p:53-83
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jeg/lbs013
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, vol. 46(2), pages 213-227, February.
    3. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-656, September.
    4. Plaut, Pnina Ohanna & Plaut, Steven E., 1998. "Endogenous Identification of Multiple Housing Price Centers in Metropolitan Areas," Journal of Housing Economics, Elsevier, vol. 7(3), pages 193-217, September.
    5. Helsley, Robert W., 1990. "Knowledge and production in the CBD," Journal of Urban Economics, Elsevier, vol. 28(3), pages 391-403, November.
    6. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens, 2010. "Housing Externalities," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 485-535, June.
    7. Berliant, Marcus & Konishi, Hideo, 2000. "The endogenous formation of a city: population agglomeration and marketplaces in a location-specific production economy," Regional Science and Urban Economics, Elsevier, vol. 30(3), pages 289-324, May.
    8. Redding, Stephen & Venables, Anthony J., 2004. "Economic geography and international inequality," Journal of International Economics, Elsevier, vol. 62(1), pages 53-82, January.
    9. Edward L. Glaeser & Glenn Ellison, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," American Economic Review, American Economic Association, vol. 89(2), pages 311-316, May.
    10. Anas, Alex & Kim, Ikki, 1996. "General Equilibrium Models of Polycentric Urban Land Use with Endogenous Congestion and Job Agglomeration," Journal of Urban Economics, Elsevier, vol. 40(2), pages 232-256, September.
    11. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    12. McMillen, Daniel P., 1996. "One Hundred Fifty Years of Land Values in Chicago: A Nonparametric Approach," Journal of Urban Economics, Elsevier, vol. 40(1), pages 100-124, July.
    13. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of 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 49, pages 2119-2171, Elsevier.
    14. Cheshire, Paul & Hilber, Christian A. L. & Kaplanis, Ioannis, 2011. "Evaluating the effects of planning policies on the retail sector: or do town centre first policies deliver the goods?," LSE Research Online Documents on Economics 31757, London School of Economics and Political Science, LSE Library.
    15. Sergio Mariotti & Lucia Piscitello & Stefano Elia, 2010. "Spatial agglomeration of multinational enterprises: the role of information externalities and knowledge spillovers," Journal of Economic Geography, Oxford University Press, vol. 10(4), pages 519-538, July.
    16. 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.
    17. 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.
    18. Sherwat E. Ibrahim & M. Hosein Fallah & Richard R. Reilly, 2009. "Localized sources of knowledge and the effect of knowledge spillovers: an empirical study of inventors in the telecommunications industry," Journal of Economic Geography, Oxford University Press, vol. 9(3), pages 405-431, May.
    19. Gabriel Ahlfeldt, 2011. "If Alonso Was Right: Modeling Accessibility And Explaining The Residential Land Gradient," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 318-338, May.
    20. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
    21. 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. Huai, Yue & Lo, Hong K. & Ng, Ka Fai, 2021. "Monocentric versus polycentric urban structure: Case study in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 99-118.
    2. Quentin Lepetit & Vincent Viguié & Charlotte Liotta, 2023. "A gridded dataset on densities, real estate prices, transport, and land use inside 192 worldwide urban areas," Post-Print hal-04433873, HAL.
    3. Waights, Sevrin, 2018. "Does the law of one price hold for hedonic prices?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(15), pages 3299-3317.
    4. Gabriel M Ahlfeldt, 2013. "If We Build it, Will They Pay? Predicting Property Price Effects of Transport Innovations," Environment and Planning A, , vol. 45(8), pages 1977-1994, August.
    5. Ahfeldt, Gabriel M. & Pietrostefani, Elisabetta, 2017. "The compact city in empirical research: A quantitative literature review," LSE Research Online Documents on Economics 83638, London School of Economics and Political Science, LSE Library.
    6. Yu-Hui Chen & Chien-Wen Peng & Chung-Hsien Yang, 2022. "Vertical Housing Price Gradient and Ground Floor Premium in Taipei City," International Real Estate Review, Global Social Science Institute, vol. 25(2), pages 199-216.
    7. Mingshu Wang, 2021. "Polycentric urban development and urban amenities: Evidence from Chinese cities," Environment and Planning B, , vol. 48(3), pages 400-416, March.
    8. Ahlfeldt, Gabriel M. & Pietrostefani, Elisabetta, 2019. "The economic effects of density: A synthesis," Journal of Urban Economics, Elsevier, vol. 111(C), pages 93-107.
    9. Hanlon, W.Walker & Heblich, Stephan, 2022. "History and urban economics," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    10. Gabriel M. Ahlfeldt & Kristoffer Moeller & Nicolai Wendland, 2015. "Chicken or egg? The PVAR econometrics of transportation," Journal of Economic Geography, Oxford University Press, vol. 15(6), pages 1169-1193.
    11. Jayson Danton & Alexander Himbert, 2017. "Residential Vertical Rent Gradients in the City," Cahiers de Recherches Economiques du Département d'économie 17.11, Université de Lausanne, Faculté des HEC, Département d’économie.
    12. Zhang, Bin & Xin, Qingyao & Chen, Siyuan & Yang, Zhiying & Wang, Zhaohua, 2024. "Urban spatial structure and commuting-related carbon emissions in China: Do monocentric cities emit more?," Energy Policy, Elsevier, vol. 186(C).
    13. Mona Jabbari & Fernando Fonseca & Rui Ramos, 2021. "Accessibility and Connectivity Criteria for Assessing Walkability: An Application in Qazvin, Iran," Sustainability, MDPI, vol. 13(7), pages 1-18, March.
    14. Gabriel M. Ahfeldt & Elisabetta Pietrostefani, 2017. "The Compact City in Empirical Research: A Quantitative Literature Review," SERC Discussion Papers 0215, Centre for Economic Performance, LSE.
    15. Cuberes, David & Roberts, Jennifer & Sechel, Cristina, 2019. "Household location in English cities," Regional Science and Urban Economics, Elsevier, vol. 75(C), pages 120-135.
    16. Charlotte Liotta & Vincent Viguié & Felix Creutzig, 2023. "Environmental and welfare gains via urban transport policy portfolios across 120 cities," Post-Print hal-04445981, HAL.
    17. Nicolai Wendland, 2015. "All access: a micro-level case study on the secondary center of Berlin (1871–1936)," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 375-399, March.
    18. Eric J. Heikkila & Ying Xu, 2022. "Polycentric Urbanization and Sustainable Development in China," Global Policy, London School of Economics and Political Science, vol. 13(S1), pages 69-78, April.
    19. Hang Ren & Wei Guo & Zhenke Zhang & Leonard Musyoka Kisovi & Priyanko Das, 2020. "Population Density and Spatial Patterns of Informal Settlements in Nairobi, Kenya," Sustainability, MDPI, vol. 12(18), pages 1-14, September.
    20. Konstantin Axenov & Alisa Timoshina & Alexandra Zemlyanova, 2020. "Commercial redevelopment of industrial and residential periphery of Russian metropolis: St. Petersburg, 1989–2017," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(4), pages 705-722, August.
    21. Jordan Rappaport, 2014. "Monocentric city redux," Research Working Paper RWP 14-9, Federal Reserve Bank of Kansas City.

    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. Gabriel M. Ahlfeldt & Nicolai Wendland, 2010. "How Polycentric is a Monocentric City? The Role of Agglomeration Economies," EERI Research Paper Series EERI_RP_2010_24, Economics and Econometrics Research Institute (EERI), Brussels.
    2. Gabriel M. Ahlfeldt & Arne Feddersen, 2010. "From periphery to core: economic adjustments to high speed rail," Working Papers 2010/38, Institut d'Economia de Barcelona (IEB).
    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. Stephen J. Redding, 2010. "The Empirics Of New Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 297-311, February.
    5. 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.
    6. 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.
    7. Gabriel M. Ahlfeldt & Stephen J. Redding & Daniel M. Sturm & Nikolaus Wolf, 2015. "The Economics of Density: Evidence From the Berlin Wall," Econometrica, Econometric Society, vol. 83, pages 2127-2189, November.
    8. 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.
    9. Zhang, Wenjia & Kockelman, Kara M., 2016. "Optimal policies in cities with congestion and agglomeration externalities: Congestion tolls, labor subsidies, and place-based strategies," Journal of Urban Economics, Elsevier, vol. 95(C), pages 64-86.
    10. Pierre‐Philippe Combes & Gilles Duranton & Laurent Gobillon & Diego Puga & Sébastien Roux, 2012. "The Productivity Advantages of Large Cities: Distinguishing Agglomeration From Firm Selection," Econometrica, Econometric Society, vol. 80(6), pages 2543-2594, November.
    11. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," 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 247-348, Elsevier.
    12. Linares Sanchez, Jose, 2020. "Employment Agglomerations and Spatial Mismatch in the Metropolitan Area of Bogota," MPRA Paper 106699, University Library of Munich, Germany.
    13. Behrens, Kristian & Robert-Nicoud, Frédéric, 2008. "Survival of the fittest in cities: agglomeration, selection, and polarisation," LSE Research Online Documents on Economics 28506, London School of Economics and Political Science, LSE Library.
    14. 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.
    15. Hans R. A. Koster & Jos Ommeren & Piet Rietveld, 2014. "Agglomeration Economies and Productivity: A Structural Estimation Approach Using Commercial Rents," Economica, London School of Economics and Political Science, vol. 81(321), pages 63-85, January.
    16. Li, Jing & Li, Liyao & Liu, Shimeng, 2022. "Attenuation of agglomeration economies: Evidence from the universe of Chinese manufacturing firms," Journal of Urban Economics, Elsevier, vol. 130(C).
    17. Stephen J. Redding & Esteban Rossi-Hansberg, 2017. "Quantitative Spatial Economics," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 21-58, September.
    18. Combes, Pierre-Philippe & Lafourcade, Miren & Thisse, Jacques-François & Toutain, Jean-Claude, 2011. "The rise and fall of spatial inequalities in France: A long-run perspective," Explorations in Economic History, Elsevier, vol. 48(2), pages 243-271, April.
    19. 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.
    20. Helena Marques, 2008. "Trade And Factor Flows In A Diverse Eu: What Lessons For The Eastern Enlargement(S)?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 364-408, April.

    More about this item

    JEL classification:

    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • N9 - Economic History - - Regional and Urban History
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets

    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:oup:jecgeo:v:13:y:2013:i:1:p:53-83. 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: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/joeg .

    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.