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The Identification of Agglomeration Economies

  • Pierre-Philippe Combes

    ()

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université Paul Cézanne - Aix-Marseille 3 - Université de la Méditerranée - Aix-Marseille 2 - EHESS - École des hautes études en sciences sociales - CNRS - AMU - Aix-Marseille Université)

  • Gilles Duranton

    ()

    (Department of Economics - University of Toronto)

  • Laurent Gobillon

    ()

    (INED - Institut national d'études démographiques)

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.

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Date of creation: 12 Nov 2010
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Handle: RePEc:hal:wpaper:halshs-00535593
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