Disentangling agglomeration economies: Agents, sources, and spatial dependence

Journal of Regional Science

Volumn 51, Issue 5, 2011, Pages 897-930

  Park, In Kwon ^a   von Rabenau, Burkhard ^b  

^a RUTGERS UNIVERSITY   (United States)

^b OHIO STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

AGGLOMERATION; AMENITY; EQUILIBRIUM; NUMERICAL MODEL; POLICY MAKING; POPULATION SIZE; PRODUCTIVITY; PUBLIC SERVICE; SCALE EFFECT; SPILLOVER EFFECT;

OHIO; UNITED STATES;

EID: 82355164415     PISSN: 00224146     EISSN: 14679787     Source Type: Journal    
DOI: 10.1111/j.1467-9787.2011.00719.x     Document Type: Article

References (108)

1. Abdel-Rahman, Hesham and Masahisa Fujita. 1990. "Product Variety, Marshallian Externalities, and City Sizes," Journal of Regional Science, 30, 165-183.
2. Andersson, Fredrik, Simon Burgess, and Julia I. Lane. 2007. "Cities, Matching and the Productivity Gains of Agglomeration," Journal of Urban Economics, 61, 112-128.
3. Andrews, Kim and James Swanson. 1995. "Does Public Infrastructure Affect Regional Performance Growth & Change, 26, 204-216.
4. Anselin, Luc. 1988. Spatial Econometrics: Methods and Models. Dordrecht; Boston: Kluwer Academic Publishers.
5. Anselin, Luc, R. J.G.M. Florax, and Sergio J. Rey. 2004. Advances in Spatial Econometrics: Methodology, Tools and Applications. Berlin; New York: Springer-Verlag.
6. Anselin, Luc, Attila Varga, and Zoltan J. Acs. 2000. "Geographic and Sectoral Characteristics of Academic Knowledge Externalities," Papers in Regional Science, 79, 435-443.
7. Ashenfelter, Orley and Cecilia Rouse. 1999. Schooling, Intelligence, and Income in America: Cracks in the Bell Curve. NBER Working Papers No. 6902, National Bureau of Economic Research, Inc.
8. Baum, Christopher F. and Mark E. Schaffer. 2003. "Instrumental Variables and GMM: Estimation and Testing," The Stata Journal, 3, 1-31.
9. Bivand, Roger. 2009. "Fitting and Interpreting Spatial Regression Models: An Applied Survey," paper presented at The 5th Nordic Econometric Meeting, School of Economics and Management, Lund, Sweden.
10. Blomquist, Glenn C., Mark C. Berger, and John P. Hoehn. 1988. "New Estimates of Quality of Life in Urban Areas," The American Economic Review, 78, 89-107.
11. Brakman, Steven, Harry Garretsen, and Charles van Marrewijk. 2009a. "Economic Geography within and between European Nations: The Role of Market Potential and Density Across Space and Time," Journal of Regional Science, 49, 777-800.
12. Brakman, Steven, Harry Garretsen, and Charles van Marrewijk. 2009b. The New Introduction to Geographical Economics. New ed. Cambridge, UK; New York: Cambridge University Press.
13. Brakman, Steven and Charles van Marrewijk. 2009. "Introduction: Heterogeneity at Different Spatial Scales," Journal of Regional Science, 49, 607-615.
14. Breton, Theodore R. 2009. "A Reconciliation of the Macro and the Micro Effects of Schooling on Income," SSRN Working Paper No. 1455161, Social Science Research Network, available at SSRN:.
15. Burnell, James D. and George Galster. 1992. "Quality-of-Life Measurements and Urban Size: An Empirical Note," Urban Studies, 29, 727-735.
16. Carlino, Gerald A. 1982. "Manufacturing Agglomeration Economies as Returns to Scale: A Production Function Approach," Papers in Regional Science, 50, 95-108.
17. Carlino, Gerald A. and Edwin S. Mills. 1987. "The Determinants of County Growth," Journal of Regional Science, 27, 39-54.
18. Carlsen, Fredrik, Jørn Rattsø, Bjørg Langset, and Lasse Stambøl. 2006. "Using Survey Data to Study Capitalization of Local Public Services," Working Paper No. 8106, Department of Economics, Norwegian University of Science and Technology.
19. Charlot, Sylvie and Gilles Duranton. 2004. "Communication Externalities in Cities," Journal of Urban Economics, 56, 581-613.
20. Ciccone, Antonio and Robert E. Hall. 1996. "Productivity and the Density of Economic Activity," The American Economic Review, 86, 54-70.
21. Coles, Melvyn G. 1994. "Understanding the Matching Function: The Role of Newspapers and Job Agencies," C.E.P.R. Discussion Papers.
22. Coles, Melvyn G. and Eric Smith. 1998. "Marketplaces and Matching," International Economic Review, 39, 239-54.
23. Combes, Pierre-Philippe and Gilles Duranton. 2006. "Labour Pooling, Labour Poaching, and Spatial Clustering," Regional Science and Urban Economics, 36, 1-28.
24. Combes, Pierre-Philippe, Gilles Duranton, and Henry G. Overman. 2005. "Agglomeration and the Adjustment of the Spatial Economy," Papers in Regional Science, 84, 311-349.
25. Crihfield, John B. and Martin P. H. Panggabean. 1995. "Is Public Infrastructure Productive? A Metropolitan Perspective using New Capital Stock Estimates," Regional Science and Urban Economics, 25, 607-630.
26. Desmet, Klaus and Marcel Fafchamps. 2005. "Changes in the Spatial Concentration of Employment Across US Counties: A Sectoral Analysis 1972-2000," Journal of Economic Geography, 5, 261-284.
27. Dormann, Carsten F., Jana M. McPherson, Miguel B. Araújo, Roger Bivand, Janine Bolliger, Gudrun Carl, Richard G. Davies, Alexandre Hirzel, Walter Jetz, W. D. Kissling, Ingolf Kühn, Ralf Ohlemüller, Pedro Peres-Neto, Björn Reineking, Boris Schröder, Frank M. Schurr, and Robert Wilson. 2007. "Methods to Account for Spatial Autocorrelation in the Analysis of Species Distributional Data: A Review," Ecography, 30, 609-628.
28. Dumais, Guy, Glenn Ellison, and Edward Glaeser. 1997. "Geographic Concentration as a Dynamic Process," NBER Working Paper No. 6270, National Bureau of Economic Research, Inc.
29. Duranton, Gilles and Henry G. Overman. 2005. "Testing for Localization using Micro-Geographic Data," Review of Economic Studies, 72, 1077-1106.
30. Duranton, Gilles and Diego Puga. 2004. "Chapter 48 Micro-Foundations of Urban Agglomeration Economies," in J. Vernon Henderson and Jacques-François Thisse (ed.), Handbook of Regional and Urban Economics. Amsterdam: Elsevier, pp. 2063-2117.
31. Eberts, Randall W. and Daniel P. McMillen. 1999. "Chapter 38 Agglomeration Economies and Urban Public Infrastructure," in P. Cheshire and E. S. Mills (eds.), Handbook of Regional and Urban Economics. Amsterdam: Elsevier, pp. 1455-1495.
32. Francis, John. 2009. "Agglomeration, Job Flows and Unemployment," The Annals of Regional Science, 43, 181-198.
33. Fu, Shihe. 2007. "Smart Café Cities: Testing Human Capital Externalities in the Boston Metropolitan Area," Journal of Urban Economics, 61, 86-111.
34. Fujita, Masahisa, Paul Krugman, and Anthony Venables. 1999. The Spatial Economy: Cities, Regions and International Trade. Cambridge, Mass.: MIT Press.
35. Fujita, Masahisa and Hideaki Ogawa. 1982. "Multiple Equilibria and Structural Transition of Non-Monocentric Urban Configurations," Regional Science and Urban Economics, 12, 161-196.
36. Gabriel, Stuart A., Joe P. Mattey, and William L. Wascher. 2003. "Compensating Differentials and Evolution in the Quality-of-Life among U.S. States," Regional Science and Urban Economics, 33, 619-649.
37. Gan, Li and Qi Li. 2004. "Efficiency of Thin and Thick Markets," NBER Working Paper No. 10815, National Bureau of Economic Research, Inc.
38. Getis, Authur and Daniel A. Griffith. 2002. "Comparative Spatial Filtering in Regression Analysis," Geographical Analysis, 34, 130-140.
39. Gibbs, Robert M. and G. Andrew Jr. Bernat. 1997. "Rural Industry Clusters Raise Local Earnings," Rural Development Perspectives, 12, 18-25.
40. Glaeser, Edward L. 1999. "Learning in Cities," Journal of Urban Economics, 46, 254-277.
41. Glaeser, Edward L. and Joshua D. Gottlieb. 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, 47, 983-1028.
42. Glaeser, Edward L. and David C. Mare. 2001. "Cities and Skills," Journal of Labor Economics, 19, 316-342.
43. Griffith, Daniel A. 1996. "Spatial Autocorrelation and Eigenfunctions of the Geographic Weights Matrix Accompanying Geo-Referenced Data," Canadian Geographer, 40, 351-367.
44. Griffith, Daniel A. 2000. "A Linear Regression Solution to the Spatial Autocorrelation Problem," Journal of Geographical Systems, 2, 141-156.
45. Gyourko, Joseph and Joseph Tracy. 1989. "The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets," The Journal of Political Economy, 97, 1208-1231.
46. Hall, Robert E. and Charles I. Jones. 1999. "Why do some Countries Produce so Much More per Worker than Others Quarterly Journal of Economics, 114, 83-116.
47. Hanink, Dean M. 2006. "A Spatial Analysis of Sectoral Variations in Returns to External Scale," Journal of Regional Science, 46, 953-968.
48. Hanson, Gordon, H. 2005. "Market Potential, Increasing Returns and Geographic Concentration," Journal of International Economics, 67, 1-24.
49. Haughwout, Andrew F. 1998. "Aggregate Production Functions, Interregional Equilibrium, and the Measurement of Infrastructure Productivity," Journal of Urban Economics, 44, 216-227.
50. Haughwout, Andrew F. 2002. "Public Infrastructure Investments, Productivity and Welfare in Fixed Geographic Areas," Journal of Public Economics, 83, 405-428.
51. Helsley, Robert W. and William C. Strange. 1990. "Matching and Agglomeration Economies in a System of Cities," Regional Science and Urban Economics, 20, 189-212.
52. Henderson, J. V. 1986. "Efficiency of Resource Usage and City Size," Journal of Urban Economics, 19, 47-70.
53. Henderson, J. V. 2003. "Marshall's Scale Economies," Journal of Urban Economics, 53, 1-28.
54. Henry, Mark S., Bertrand Schmitt, and Virginie Piguet. 2001. "Spatial Econometric Models for Simultaneous Systems: Application to Rural Community Growth in France," International Regional Science Review, 24, 171-193.
55. Higano, Yoshiro and Hiroyuki Shibusawa. 1999. "Agglomeration Diseconomies of Traffic Congestion and Agglomeration Economies of Interaction in the Information-Oriented City," Journal of Regional Science, 39, 21-49.
56. Hoehn, John P., Mark C. Berger, and Glenn C. Blomquist. 1987. "A Hedonic Model of Interregional Wages, Rents, and Amenity Values," Journal of Regional Science, 27, 605-620.
57. Holmes, Thomas. 1999. "Localization of Industry and Vertical Disintegration," The review of economics and statistics, 81, 314-325.
58. Holtz-Eakin, Douglas. 1994. "Public-Sector Capital and the Productivity Puzzle," The review of economics and statistics, 76, 12-21.
59. Holtz-Eakin, Douglas and Amy E. Schwartz. 1995. "Spatial Productivity Spillovers from Public Infrastructure: Evidence from State Highways," International Tax and Public Finance, 2, 459-468.
60. Jacobs, Jane. 1969. The Economy of Cities. New York: Random House.
61. Kelejian, Harry H. and Ingmar R. Prucha. 1998. "A Generalized Spatial Two-Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Disturbances," The Journal of Real Estate Finance and Economics, 17, 99-121.
62. Kelejian, Harry H. and Ingmar R. Prucha. 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, 40, 509-533.
63. Kelejian, Harry H. and Ingmar R. Prucha. 2004. "Estimation of Simultaneous Systems of Spatially Interrelated Cross Sectional Equations," Journal of Econometrics, 118, 27-50.
64. Kelejian, Harry H. and Ingmar R. Prucha. 2008. "Specification and Estimation of Spatial Autoregressive Models with Autoregressive and Heteroskedastic Disturbances," CESifo Group Munich.
65. Knapp, Thomas A. and Philip E. Graves. 1989. "On the Role of Amenities in Models of Migration and Regional Development," Journal of Regional Science, 29, 71-87.
66. Koo, Jun. 2005. "Agglomeration and Spillovers in a Simultaneous Framework," The Annals of Regional Science, 39, 35-47.
67. Krugman, Paul. 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, 99, 483-499.
68. Lee, Lung-Fei. 2004. "Asymptotic Distributions of Quasi-Maximum Likelihood Estimators for Spatial Autoregressive Models," Econometrica, 72, 1899-1925.
69. LeSage, James P. and Manfred M. Fischer. 2008. "Spatial Growth Regressions: Model Specification, Estimation and Interpretation," Spatial Economic Analysis, 3, 275-304.
70. LeSage, James P. and R. Kelley Pace. 2009. Introduction to Spatial Econometrics. Boca Raton: CRC Press.
71. Lim, Up. 2004. "Knowledge Spillovers, Agglomeration Economies, and the Geography of Innovative Activity: A Spatial Econometric Analysis," Review of Regional Studies, 34, 11-36.
72. Lucas, Robert E. and Esteban Rossi-Hansberg. 2002. "On the Internal Structure of Cities," Econometrica, 70, 1445-1476.
73. McCann, Philip and Daniel Shefer. 2004. "Location, Agglomeration and Infrastructure," Papers in Regional Science, 83, 177-196.
74. McCann, Philip and Jaakko Simonen. 2005. "Innovation, Knowledge Spillovers and Local Labour Markets," Papers in Regional Science, 84, 465-485.
75. Moomaw, Ronald L. 1981. "Productivity and City Size: A Critique of the Evidence," Quarterly Journal of Economics, 96, 675-688.
76. Moomaw, Ronald L. 1983. "Is Population Scale a Worthless Surrogate for Business Agglomeration Economies Regional Science and Urban Economics, 13, 525-545.
77. Morrison, Catherine J. and Amy E. Schwartz. 1996. "State Infrastructure and Productive Performance," The American Economic Review, 86, 1095-1111.
78. Mozayeni, Simin. 1995. "A Comparative Analysis of the Output Measures of Local Public Services," International Advances in Economic Research, 1, 173-181.
79. Munnell, Alicia H. 1990. "How does Public Infrastructure Affect Regional Economic Performance New England Economic Review, 30, 11-32.
80. Munnell, Alicia H. 1992. "Policy Watch: Infrastructure Investment and Economic Growth," Journal of Economic Perspectives, 6, 189-198.
81. Nechyba, Thomas J. and Robert P. Strauss. 1998. "Community Choice and Local Public Services: A Discrete Choice Approach," Regional Science and Urban Economics, 28, 51-73.
82. Oates, Wallace E. 1969. "The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis," Journal of Political Economy, 77, 957-971.
83. Oates, Wallace E. 1973. "The Effects of Property Taxes and Local Public Spending on Property Values: A Reply and Yet further Results," Journal of Political Economy, 81, 1004-1008.
84. Ota, Mitsuru and Masahisa Fujita. 1993. "Communication Technologies and Spatial Organization of Multi-Unit Firms in Metropolitan Areas," Regional Science and Urban Economics, 23, 695-729.
85. Overman, Henry G. and Diego Puga. 2009. "Labour Pooling as a Source of Agglomeration: An Empirical Investigation," C.E.P.R. Discussion Papers.
86. Paci, Raffaele and Stefano Usai. 1999. "Externalities, Knowledge Spillovers and the Spatial Distribution of Innovation," Geojournal, 49, 381-390.
87. Patuelli, Roberto, Daniel A. Griffith, Michael Tiefelsdorf, and Peter Nijkamp. 2009. "Spatial Filtering and Eigenvector Stability: Space-Time Models for German Unemployment Data," Biblioteca universitaria di Lugano (University Library of Lugano).
88. Pollakowski, Henry O. 1973. "The Effects of Property Taxes and Local Public Spending on Property Values: A Comment and further Results," Journal of Political Economy, 81, 994-1003.
89. Puga, Diego. 2010. "The Magnitude and Causes of Agglomeration Economies," Journal of Regional Science, 50, 203-219.
90. Rey, Sergio J. and Marlon G. Boarnet. 2004. "A Taxonomy of Spatial Econometric Models for Simultaneous Equations Systems," in L. Anselin, R. J. G. M. Florax and S. J. Rey (eds.), Advances in Spatial Econometrics: Methodology, Tools and Applications. Berlin; New York. Springer-Verlag, pp. 99-120.
91. Roback, Jennifer. 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, 90, 1257-1278.
92. Rosen, Harvey S. and David J. Fullerton. 1977. "A Note on Local Tax Rates, Public Benefit Levels, and Property Values," Journal of Political Economy, 85, 433-440.
93. Rosenthal, Stuart S. and William C. Strange. 2001. "The Determinants of Agglomeration," Journal of Urban Economics, 50, 191-229.
94. Rosenthal, Stuart S. and William C. Strange. 2003. "Geography, Industrial Organization, and Agglomeration," The Review of Economics and Statistics, 85, 377-393.
95. Rosenthal, Stuart S. and William C. Strange. 2004. "Chapter 49 Evidence on the Nature and Sources of Agglomeration Economies," in J. Vernon Henderson and Jacques-François Thisse (ed.), Handbook of Regional and Urban Economics. Amsterdam: Elsevier, pp. 2119-2171.
96. Rupasingha, Anil and Stephan J. Goetz. 2004. "County Amenities and Net Migration," Agricultural and Resource Economics Review, 33, 245-254.
97. Scotchmer, Suzanne. 2002. "Local Public Goods and Clubs," Amsterdam: Elsevier, pp. 1997-2042.
98. Segal, David. 1976. "Are there Returns to Scale in City Size The review of economics and statistics, 58, 339-350.
99. Solow, Robert M. 1956. "A Contribution to the Theory of Economic Growth," Quarterly Journal of Economics, 70, 65-94.
100. Stahl, Konrad. 1982. "Differentiated Products, Consumer Search, and Locational Oligopoly," The Journal of Industrial Economics, 31, 97-113.
101. Tabuchi, Takatoshi. 1998. "Urban Agglomeration and Dispersion: A Synthesis of Alonso and Krugman," Journal of Urban Economics, 44, 333-351.
102. Tabuchi, Takatoshi and Atsushi Yoshida. 2000. "Separating Urban Agglomeration Economies in Consumption and Production," Journal of Urban Economics, 48, 70-84.
103. Tiebout, Charles M. 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, 64(5): 416-424.
104. Tiefelsdorf, M. and D. A. Griffith. 2007. "Semiparametric Filtering of Spatial Autocorrelation: The Eigenvector Approach," Environment and Planning A, 39, 1193-1221.
105. van Soest, Daan P., Shelby Gerking, and Frank G. van Oort. 2006. "Spatial Impacts of Agglomeration Externalities," Journal of Regional Science, 46, 881-899.
106. Walde, Janette, Mario Larch, and Gottfried Tappeiner. 2008. "Performance Contest between MLE and GMM for Huge Spatial Autoregressive Models," Journal of Statistical Computation and Simulation, 78(2), 151-166.
107. Wheaton, William C. and Mark J. Lewis. 2002. "Urban Wages and Labor Market Agglomeration," Journal of Urban Economics, 51, 542-562.
108. Zheng, Xiao-Ping. 2001. "Determinants of Agglomeration Economies and Diseconomies: Empirical Evidence from Tokyo," Socio-Economic Planning Sciences, 35, 131-144.