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Intraurban Accessibility and Agglomeration

Author

Listed:
  • Michael Iacono
  • Jason Cao
  • Mengying Cui
  • David Levinson

    (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

Abstract

This study investigates the relationship between urban accessibility and firm agglomeration, as reflected in patterns of urban employment densities. We use measures of accessibility derived from the regional highway network, combined with small-scale (Census block-level) data on employment from the Longitudinal Employer-Household Dynamics (LEHD) data set to generate proxies for different sources of agglomeration, specifically urbanization and localization economies. These variables are employed in a set of employment density regressions for 20 two-digit NAICS code sectors to identify the propensity of each sector to agglomerate in response to varying levels of accessibility. The density regressions are applied to sample data from the Minneapolis-St. Paul, Minnesota (Twin Cities) metropolitan region for the years 2000 and 2010. We find that in general urbanization effects tend to overshadow those of localization effects. Moreover, these effects tend to vary by sector, with many service-based sectors showing a stronger propensity to agglomerate than manufacturing and several "basic" sectors like agriculture, mining and utilities.

Suggested Citation

  • Michael Iacono & Jason Cao & Mengying Cui & David Levinson, 2016. "Intraurban Accessibility and Agglomeration," Working Papers 147, University of Minnesota: Nexus Research Group.
    • Handle: RePEc:nex:wpaper:intraurbanaccessibility
    DOI: 10.25910/Z07C-KX08
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    File URL: https://hdl.handle.net/11299/181534
    File Function: First version, 2016; Second version, 2021
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    Keywords

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    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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