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The Identification of Agglomeration Economies

Author

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  • Pierre-Philippe Combes

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Gilles Duranton

    (Department of Economics - University of Toronto)

  • Laurent Gobillon

    (INED - Institut national d'études démographiques)

Abstract

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.

Suggested Citation

  • Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon, 2010. "The Identification of Agglomeration Economies," Working Papers halshs-00535593, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00535593
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00535593
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    References listed on IDEAS

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    1. Pierre‐Philippe Combes & Gilles Duranton & Laurent Gobillon & Diego Puga & Sébastien Roux, 2012. "The Productivity Advantages of Large Cities: Distinguishing Agglomeration From Firm Selection," Econometrica, Econometric Society, vol. 80(6), pages 2543-2594, November.
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    More about this item

    Keywords

    agglomeration economies; instrumental variables; structural estimation; natural experiments;
    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)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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