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Urban productivity estimation with heterogeneous prices and labour

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  • Mare, David C.

Abstract

This study estimates differences in productivity (mfp) across New Zealand urban areas, with a focus on the size of Auckland’s productivity premium. The estimates are based on analysis of firm-level data from Statistics New Zealand’s Longitudinal Business Database. The methods used in the paper overcome some of the biases that arise in standard approaches to spatial productivity estimation - biases arising from imperfect competition, spatial price variation, firm heterogeneity, and labour-sorting across cities. Ignoring these factors leads to biased estimates of the Auckland’s relative productivity performance. The study also investigates industry differences in spatial productivity patterns.

Suggested Citation

  • Mare, David C., 2016. "Urban productivity estimation with heterogeneous prices and labour," Motu Working Papers 290558, Motu Economic and Public Policy Research.
    • Handle: RePEc:ags:motuwp:290558
    DOI: 10.22004/ag.econ.290558
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