Journal Article

The identification of agglomeration economies

Pierre-Philippe Combes, Gilles Duranton and Laurent Gobillon

in Journal of Economic Geography

Volume 11, issue 2, pages 253-266
Published in print March 2011 | ISSN: 1468-2702
Published online December 2010 | e-ISSN: 1468-2710 | DOI: https://dx.doi.org/10.1093/jeg/lbq038
The identification of agglomeration economies

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  • Urban, Rural, and Regional Economics
  • Household Analysis

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Measures of urban productivity are typically positively associated with city population. But is this relationship causal? We discuss the main sources of bias in the proper identification of agglomeration effects. We also assess a variety of solutions that have been proposed in the literature to deal with them.

Keywords: agglomeration economies; instrumental variables; structural estimation; natural experiments; R12; R23

Journal Article.  6789 words.  Illustrated.

Subjects: Urban, Rural, and Regional Economics ; Household Analysis

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