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The Costs of Agglomeration: Land Prices in French Cities

  • 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 Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - École des Ponts ParisTech (ENPC) - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics, INED - Institut national d'études démographiques, IZA - Institute for the Study of Labor - IZA)

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 HAL in its series PSE Working Papers with number halshs-00849078.

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Date of creation: 30 Jul 2013
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Handle: RePEc:hal:psewpa:halshs-00849078
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  26. David Card & Alan B. Krueger, 1991. "School Quality and Black-White Relative Earnings: A Direct Assessment," NBER Working Papers 3713, National Bureau of Economic Research, Inc.
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  28. David Albouy & Gabriel Ehrlich, 2012. "Housing Productivity and the Social Cost of Land-Use Restrictions," NBER Working Papers 18110, National Bureau of Economic Research, Inc.
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