IDEAS home Printed from https://ideas.repec.org/p/tky/fseres/99cf41.html
   My bibliography  Save this paper

Urban Agglomeration Economies in Consumption and Production

Author

Listed:
  • Takatoshi Tabuchi

    (Faculty of Economics, University of Tokyo.)

  • Atsushi Yoshida

    (Osaka Prefecture University)

Abstract

In this paper, we estimated the net agglomeration economies in the consumption side as well as the production side using Japanese city-based data of 1992, when interregional net migration nearly ceased. We showed that doubling city size increases the nominal wage by approximately 10% but decreases the real wage by approximately 5%-9%. A 10% increase of the nominal wage is attributed to the productivity increase in production activities while a 5%-9% decrease of the real wage is a compensation for the net agglomeration economies, which are the benefits from product variety minus the costs of congestion. In other words, city bigness not only enhances the productivity of firms but also brings net agglomeration economies to households. In this way, we separated the net agglomeration economies in the production side from those in the consumption side.

Suggested Citation

  • Takatoshi Tabuchi & Atsushi Yoshida, 1999. "Urban Agglomeration Economies in Consumption and Production," CIRJE F-Series CIRJE-F-41, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:99cf41
    as

    Download full text from publisher

    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/99/cf41/contents.htm
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tky:fseres:99cf41. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CIRJE administrative office (email available below). General contact details of provider: https://edirc.repec.org/data/ritokjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.