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Productivity and Metropolitan Density

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  • Timothy F. Harris

    ()

  • Yannnis M. Ioannides

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Abstract

This paper evaluates the relationship between urban productivity and density using data on metropolitan areas. This is an alternative measure of the urban economy to the one employed by Ciccone and Hall (1996), who use data on output and education by state and employment and education by county, which excludes agricultural and mining sectors. Instead, our U.S. metropolitan area data are defined contemporaneously for the five available census years from 1950 to 1990. These data allow us to conduct both cross-sectional and panel analyses. Furthermore, since we use a model where income is a linear function of density, these data allow us to evaluate the urban system in its own right. Our results replicate the key finding of Ciccone and Hall (1996): a doubling of population density leads to about a 6% increase in productivity. Our results establish an important role for Jacobs externalities, measured by metropolitan area population.

Suggested Citation

  • Timothy F. Harris & Yannnis M. Ioannides, 2000. "Productivity and Metropolitan Density," Discussion Papers Series, Department of Economics, Tufts University 0016, Department of Economics, Tufts University.
    • Handle: RePEc:tuf:tuftec:0016
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    File URL: http://ase.tufts.edu/econ/papers/200016.pdf
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    References listed on IDEAS

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    1. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-656, September.
    2. Linda Harris Dobkins & Yannis M. Ioannides, 1999. "Dynamic Evolution of the U.S. City Size Distribution," Discussion Papers Series, Department of Economics, Tufts University 9916, Department of Economics, Tufts University.
    3. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    4. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    5. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
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    1. High Gas Prices and the Poor
      by ryan in The bellows on 2008-06-09 21:45:40

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    Cited by:

    1. Chad Sparber, 2010. "Racial Diversity and Macroeconomic Productivity across US States and Cities," Regional Studies, Taylor & Francis Journals, vol. 44(1), pages 71-85.
    2. Mihai Nica, 2004. "Geographical Concentration and Economic Growth: Do Externalities Matter?," Urban/Regional 0412002, EconWPA.
    3. Timothy F. Harris & Yannis M. Ioannides, 2000. "History versus Expectations: an Empirical Investigation," Discussion Papers Series, Department of Economics, Tufts University 0014, Department of Economics, Tufts University.
    4. Florian Lehmer & Joachim MOLler, 2008. "Group-specific Effects of Inter-regional Mobility on Earnings - A Microdata Analysis for Germany," Regional Studies, Taylor & Francis Journals, vol. 42(5), pages 657-674.
    5. Feldman, Maryann P. & Kogler, Dieter F., 2010. "Stylized Facts in the Geography of Innovation," Handbook of the Economics of Innovation, Elsevier.
    6. Garcia-López, Miquel-Àngel, 2010. "Population suburbanization in Barcelona, 1991-2005: Is its spatial structure changing?," Journal of Housing Economics, Elsevier, vol. 19(2), pages 119-132, June.
    7. Lynne Pepall & Daniel Richards, 2000. "Merger Wars: Bidding for Complementary Assets," Discussion Papers Series, Department of Economics, Tufts University 0020, Department of Economics, Tufts University.

    More about this item

    Keywords

    urban density; urban growth; urban productivity; Jacobs externalities; agglomeration externalities;

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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