Work

Heterogeneous Agglomeration

Year: 2016

Type: article

Abstract: Many prior treatments of agglomeration explicitly or implicitly assume that all industries agglomerate for the same reasons. This paper uses U.K. establishment-level coagglomeration data to document substantial heterogeneity across industries in the microfoundations of agglomeration economies. It finds robust evidence of organizational and adaptive agglomeration forces as discussed by Chinitz (1961), Vernon (1960), and Jacobs (1969). These forces interact with the traditional Marshallian (1890) factors of input sharing, labor pooling, and knowledge spillovers, establishing a previously unrecognized complementarity between the approaches of Marshall and Jacobs, as well as others, to the analysis of agglomeration.

Source: The Review of Economics and Statistics

DOI: 10.1162/rest_a_00604

Authors: Giulia Faggio, Olmo Silva, William C. Strange

Institutions: City, University of London, London School of Economics and Political Science, University of Toronto

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: bronze

Funders: Syracuse University, Social Sciences and Humanities Research Council of Canada, Economic and Social Research Council

Award: G4880584255