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The Costs of Agglomeration: Land Prices in French Cities

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

We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French land price data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.041. Our approach also yields a number of intermediate outputs of independent interest such as a distance gradient for land prices and the elasticity of unit land prices with respect to city population. For the latter, our preferred estimate is 0.72.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9240.

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Date of creation: Dec 2012
Date of revision:
Handle: RePEc:cpr:ceprdp:9240
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  7. Davis, Morris & Heathcote, Jonathan, 2005. "The Price and Quantity of Residential Land in the United States," CEPR Discussion Papers 5333, C.E.P.R. Discussion Papers.
  8. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2010. "The Identification of Agglomeration Economies," CEPR Discussion Papers 8119, C.E.P.R. Discussion Papers.
  9. Duranton, Gilles, 2008. "From Cities to Productivity and Growth in Developing Countries," CEPR Discussion Papers 6634, C.E.P.R. Discussion Papers.
  10. Chun-Chung Au & J. Vernon Henderson, 2006. "Are Chinese Cities Too Small?," Review of Economic Studies, Oxford University Press, vol. 73(3), pages 549-576.
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  21. Alan B. Krueger, 2009. "Measuring the Subjective Well-Being of Nations: National Accounts of Time Use and Well-Being," NBER Books, National Bureau of Economic Research, Inc, number krue08-1, December.
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  24. Diego Puga, 2009. "The magnitude and causes of agglomeration economies," Working Papers 2009-09, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
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  26. 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.
  27. France Guérin-Pace & Denise Pumain, 1990. "150 ans de croissance urbaine," Économie et Statistique, Programme National Persée, vol. 230(1), pages 5-16.
  28. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, April.
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