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On the Contribution of Agglomeration Economies to Spatial Concentration of US Employment

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  • Satyajit Chatterjee

Abstract

In this paper I explore,via a quantitative spatial macroeconomic model, the contribution of agglomeration economies to the observed spatial concentration of US employment. The approach is analogous to "growth accounting." The results of the "spatial accounting" depend on the details of the model used. The critical detail pertains to how the model rationalizes the stability of low-density localities. If it is rationalized via an appeal to restrictions on labor mobility, the accounting implies that the bulk of spatial concentration results from an unequal distribution of natural advantages. In contrast, if it is rationalized via an agglomeration threshold (an employment level below which local increasing returns do not operate),the accounting implies that the bulk of the spatial concentration results from increasing returns

Suggested Citation

  • Satyajit Chatterjee, 2004. "On the Contribution of Agglomeration Economies to Spatial Concentration of US Employment," Econometric Society 2004 North American Summer Meetings 164, Econometric Society.
  • Handle: RePEc:ecm:nasm04:164
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    More about this item

    Keywords

    Agglomeration Economies; Natural Advantage; Density; Congestion;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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