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The Costs of Agglomeration: Land Prices in French Cities

Author

Listed:
  • Pierre-Philippe Combes

    (AMU - Aix Marseille Université, CEPR - Center for Economic Policy Research - CEPR)

  • Gilles Duranton

    (Wharton School, University of Pennsylvania - University of Pennsylvania)

  • Laurent Gobillon

    (CEPR - Center for Economic Policy Research - CEPR, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, INED - Institut national d'études démographiques, IZA - Institute for the Study of Labor - IZA)

Abstract

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.

Suggested Citation

  • Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon, 2013. "The Costs of Agglomeration: Land Prices in French Cities," PSE Working Papers halshs-00849078, HAL.
  • Handle: RePEc:hal:psewpa:halshs-00849078
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00849078
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Urban costs; Land prices; Land use; Agglomeration;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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