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The Identification of Agglomeration Economies

  • Combes, Pierre-Philippe
  • Duranton, Gilles
  • Gobillon, Laurent

Measures of urban productivity are typically positively associated with city population. But is this relationship causal? We discuss the main sources of bias in the proper identification of agglomeration effects. We also assess a variety of solutions that have been proposed in the literature to deal with them.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8119.

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Date of creation: Nov 2010
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Handle: RePEc:cpr:ceprdp:8119
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  31. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers and Journal Articles 03-91, W.E. Upjohn Institute for Employment Research.
  32. Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon & Sébastien Roux, 2010. "Estimating agglomeration economies with history, geology and worker effects," Post-Print halshs-00754795, HAL.
  33. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-90, October.
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  38. Thomas J. Holmes, 2010. "Structural, Experimentalist, And Descriptive Approaches To Empirical Work In Regional Economics," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 5-22.
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