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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 [Philadelphia])

  • Laurent Gobillon

    (CEPR - Center for Economic Policy Research - CEPR, PSE - Paris-Jourdan Sciences Economiques - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - EHESS - École des hautes études en sciences sociales - INRA - Institut National de la Recherche Agronomique - ENS Paris - École normale supérieure - Paris, PSE - Paris School of Economics, 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," Working Papers halshs-00849078, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00849078
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00849078
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    References listed on IDEAS

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    Cited by:

    1. Gabriel M. Ahlfeldt & Elisabetta Pietrostefani, 2017. "The Economic Effects of Density: A Synthesis," SERC Discussion Papers 0210, Spatial Economics Research Centre, LSE.
    2. Ahlfeldt, Gabriel M. & Wendland, Nicolai, 2016. "The spatial decay in commuting probabilities: Employment potential vs. commuting gravity," Economics Letters, Elsevier, vol. 143(C), pages 125-129.
    3. Gabriel Ahlfeldt & Daniel McMillen, 2014. "New Estimates of the Elasticity of Substitution of Land for Capital," ERSA conference papers ersa14p108, European Regional Science Association.
    4. Jan Eeckhout & Nezih Guner, 2017. "Optimal Spatial Taxation: Are Big Cities too Small?," Working Papers wp2018_1705, CEMFI.
    5. Gabriel Ahlfeldt & Volker Nitsch & Nicolai Wendland, 2016. "Ease vs. Noise: On the Conflicting Effects of Transportation Infrastructure," CESifo Working Paper Series 6058, CESifo Group Munich.
    6. Kristian Behrens & Gilles Duranton & Frédéric Robert-Nicoud, 2014. "Productive Cities: Sorting, Selection, and Agglomeration," Journal of Political Economy, University of Chicago Press, vol. 122(3), pages 507-553.

    More about this item

    Keywords

    Urban costs; Land prices; Land use; Agglomeration;

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