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Agglomeration economies and evolving urban form

Author

Listed:
  • Genevieve Giuliano

    (University of Southern California)

  • Sanggyun Kang

    (The Korea Transport Institute)

  • Quan Yuan

    (Tongji University)

Abstract

Agglomeration economies are a fundamental explanation for the existence of cities. Spatial clustering allows for a variety of external benefits such as labor pooling, sharing of suppliers, and specialization; these in turn contribute to increased productivity and economic growth. Over the past several decades, the strength and nature of agglomeration economies have come into question. In the 1980s, it was argued that information and telecommunications technology reduced the need for physical proximity, and hence the value of agglomeration economies. Reduced agglomeration economies would explain the decentralization of economic activity and decline of central cities. We are now fully in the era of the information economy, with smart phones, cars, buildings, and appliances merging into the Internet of Things. At the same time, we observe the re-emergence of some downtowns and the continued growth of megalopolises around the USA, despite rising congestion. This essay traces the role and nature of agglomeration economies in the evolution of urban form.

Suggested Citation

  • Genevieve Giuliano & Sanggyun Kang & Quan Yuan, 2019. "Agglomeration economies and evolving urban form," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 377-398, December.
  • Handle: RePEc:spr:anresc:v:63:y:2019:i:3:d:10.1007_s00168-019-00957-4
    DOI: 10.1007/s00168-019-00957-4
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    More about this item

    Keywords

    Agglomeration economies; Employment centers; Spatial clustering; Urban form; Los Angeles;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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