This research review discusses some of the most essential papers encompassing agglomeration economies. Agglomeration economies are manifested in cities and industry clusters shaping the neighborhoods and the regions that contain them. The review analyses econometric methods and data improvements, geographic scales at which agglomeration economies operate, micro-neighborhoods and mega-regions. The author also uncovers the forces driving the field including labor markets, input markets and dynamic phenomena such as innovation, technology change and growth.
This research review discusses some of the most essential papers encompassing agglomeration economies. Agglomeration economies are manifested in cities and industry clusters shaping the neighborhoods and the regions that contain them. The review analyses econometric methods and data improvements, geographic scales at which agglomeration economies operate, micro-neighborhoods and mega-regions. The author also uncovers the forces driving the field including labor markets, input markets and dynamic phenomena such as innovation, technology change and growth.
Contents:
Acknowledgements
Introduction William C. Strange
PART I ESTIMATING AGGLOMERATION ECONOMIES [193 pp]
1. Gilles Duranton and Henry G. Overman (2005), ‘Testing for
Localization Using Micro-Geographic Data’, Review of Economic
Studies, 72 (4), December, 1077–106
2. J. Vernon Henderson (2003), ‘Marshall's Scale Economies’,
Journal of Urban Economics, 53 (1), January, 1–28
3. Pierre-Philippe Combes, Gilles Duranton, and Laurent Gobillon
(2008), ‘Spatial Wage Disparities: Sorting Matters!’, Journal of
Urban Economics, 63 (2), March, 723–42
4. Michael Greenstone, Richard Hornbeck and Enrico Moretti (2010),
‘Identifying Agglomeration Spillovers: Evidence from Winners and
Losers of Large Plant Openings’, Journal of Political Economy, 118
(3), June, 536–98
5. Pierre-Philippe Combes (2012), ‘The Productivity Advantages of
Large Cities: Distinguishing Agglomeration from Firm Selection’,
Econometrica, 80 (6), November, 2543–94
PART II THE GEOGRAPHY OF AGGLOMERATION ECONOMIES
6. Stuart S. Rosenthal and William C. Strange (2003), ‘Geography,
Industrial Organization, and Agglomeration’, Review of Economics
and Statistics, 85 (2), May, 377–93
7. Mohammad Arzaghi and J. Vernon Henderson (2008), ‘Networking off
Madison Avenue’, Review of Economic Studies, 75 (4), October,
1011–38
8. Gabriel M. Ahlfeldt, Stephen J. Redding, Daniel M. Strum and
Nikolas Wolf (2015), ‘The Economics of Density: Evidence from the
Berlin Wall’, Econometrica, 86 (6), November, 2127–89
PART III MICROFOUNDATIONS: HORSE RACES
9. Glenn Ellison, Edward L. Glaeser and William R. Kerr (2010),
‘What Causes Industry Agglomeration? Evidence from Coagglomeration
Patterns’, American Economic Review, 100 (3), June, 1195–213
10. Stuart S. Rosenthal and William C. Strange (2001), ‘The
Determinants of Agglomeration’, Journal of Urban Economics, 50 (2),
September, 191–229
11. Jordi Jofre-Monseny, Raquel Marín-López and Elisabet
Viladecans-Marsal (2011), ‘The Mechanisms of Agglomeration:
Evidence from the Effect of Inter-Industry Relations on the
Location of New Firms’, Journal of Urban Economics, 70 (2–3),
September–November, 61–74
12. Stephen B. Billings and Erik B. Johnson (2016), ‘Agglomeration
within an Urban Area’, Journal of Urban Economics, 91, January,
13–25
13. Giulia Faggio, Olmo Silva and William C. Strange (2017),
‘Heterogeneous Agglomeration’, Review of Economics and Statistics,
99 (1), February, 80–94
PART IV TECHNOLOGY, DYNAMICS, GROWTH
14. Gilles Duranton and Diego Puga (2001), ‘Nursery Cities: Urban
Diversity, Process Innovation, and the Life Cycle of Products’,
American Economic Review, 91 (5), December, 1454–77
15. Jeffrey Lin (2011), ‘Technological Adaptation, Cities, and New
Work’, Review of Economics and Statistics, 93 (2), May, 554–74
16. Donald R. Davis and David E. Weinstein (2002), ‘Bones, Bombs,
and Break Points: The Geography of Economic Activity’, American
Economic Review, 92 (5), December, 1269–89
17. Ajay Agrawal, Devesh Kapur and John McHale (2008), ‘How do
Spatial and Social Proximity Influence Knowledge Flows? Evidence
from Patent Data’, Journal of Urban Economics, 64 (2), September,
258–69
18. Edward L. Glaeser, Sari Pekkala Kerr and William R. Kerr
(2015), ‘Entrepreneurship and Urban Growth: An Empirical Assessment
with Historical Mines’, Review of Economics and Statistics, 97 (2),
April, 498–520
PART V LABOR MARKETS
19. Bruce Fallick, Charles A. Fleischman and James B. Rebitzer
(2006), ‘Job-Hopping in Silicon Valley: Some Evidence Concerning
the Microfoundations of a High-Technology Cluster’, Review of
Economics and Statistics, 88 (3), October, 472–81
20. Hoyt Bleakley and Jeffrey Lin (2012), ‘Thick-Market Effects and
Churning in the Labor Market: Evidence from US Cities’, Journal of
Urban Economics, 72 (2–3), September–November, 87–103
21. Jorge De La Roca and Diego Puga (2017), ‘Learning by Working in
Big Cities’, Review of Economic Studies, 84 (1), January,
106–42
22. Nathaniel Baum-Snow and Ronni Pavan (2011), ‘Understanding the
City Size Wage Gap’, Review of Economic Studies, 79 (1), August,
88–127
23. Rebecca Diamond (2016), ‘The Determinants and Welfare
Implications of US Workers' Diverging Location Choices by Skill:
1980–2000’, American Economic Review, 106 (3), March, 479–524
24. Marigee Bacolod, Bernardo S. Blum and William C. Strange
(2016), ‘Skills in the City’, Journal of Urban Economics, 65 (2),
March, 136–53
25. Joseph Gyourko, Christopher Mayer, and Todd Sinai (2013),
‘Superstar Cities’, American Economic Journal: Economic Policy, 5
(4), November, 167–99
PART VI INPUT MARKETS AND ECONOMIC GEOGRAPHY
26. Gianmarco Ottaviano, Takatoshi Tabuchi and Jacques-François
Thisse (2002), ‘Agglomeration and Trade Revisited’, International
Economic Review, 43 (2), May, 409–35
27. Treb Allen and Costas Arkolakis (2014), ‘Trade and the
Topography of the Spatial Economy’, Quarterly Journal of Economics,
129 (3), June, 1085–140
28. Thomas J. Holmes (2011), ‘The Diffusion of Wal-Mart and
Economies of Density’, Econometrica, 79 (1), January, 253–302
Index
Edited by William C. Strange, SmartCentres Chair of Real Estate, Professor of Economic Analysis and Policy, Rotman School of Management, University of Toronto, Canada
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