The Economics of Density: Evidence From the Berlin Wall

Econometrica

Volumn 83, Issue 6, 2015, Pages 2127-2189

  Ahlfeldt, Gabriel M ^a,b   Redding, Stephen J ^b,c,d   Sturm, Daniel M ^a,b   Wolf, Nikolaus ^b,e  

^a LONDON SCHOOL OF ECONOMICS   (United Kingdom)

^b CEPR ^*  (United States)

^c PRINCETON UNIVERSITY   (United States)

^d NATIONAL BUREAU OF ECONOMIC RESEARCH   (United States)

^e HUMBOLDT UNIVERSITY   (Germany)

Author keywords

Agglomeration; Cities; Commuting; Density; Gravity

Indexed keywords

EID: 84926439401     PISSN: 00129682     EISSN: 14680262     Source Type: Journal    
DOI: 10.3982/ECTA10876     Document Type: Article

References (71)

1. Ahlfeldt, G. M., S. J. Redding, D. M. Sturm, and N. Wolf (2015): "Supplement to 'The Economics of Density: Evidence From the Berlin Wall', " Econometrica Supplemental Material, 83, http://dx.doi.org/10.3982/ECTA10876.
2. Albouy, D. (2008): "Are Big Cities Bad Places to Live? Estimating Quality of Life Across Metropolitan Areas, " Working Paper 14472, NBER.
3. Alonso, W. (1964): Location and Land Use. Cambridge, MA: Harvard. 10.4159/harvard.9780674730854
4. American Embassy (1965): Handbook of Economic Statistics: Federal Republic of Germany and Western Sectors of Berlin. Bonn: American Embassy.
5. Arzaghi, M., and J. V. Henderson (2008): "Networking Off Madison Avenue, " Review of Economic Studies, 75 (4), 1011-1038. 10.1111/j.1467-937X.2008.00499.x
6. Baum-Snow, N. (2007): "Did Highways Cause Suburbanization?" Quarterly Journal of Economics, 122 (2), 775-780. 10.1162/qjec.122.2.775
7. Bertrand, M., E. Duflo, and S. Mullainathan (2004): "How Much Should We Trust Differences-in-Differences Estimators?" Quarterly Journal of Economics, 119 (1), 249-275. 10.1162/003355304772839588
8. Bleakley, H., and J. Lin (2012): "Portage and Path Dependence, " Quarterly Journal of Economics, 127 (2), 587-644. 10.1093/qje/qjs011
9. Brinkman, J. (2013): "Congestion, Agglomeration, and the Structure of Cities, " Working Paper 13-25, Philadelphia Fed.
10. Ciccone, A., and R. E. Hall (1996): "Productivity and the Density of Economic Activity, " American Economic Review, 86 (1), 54-70.
11. Combes, P.-P., G. Duranton, L. Gobillon, and S. Roux (2010): "Estimating Agglomeration Economies With History, Geology, and Worker Effects, " in Agglomeration Economies, ed. by E. L. Glaeser. Chicago: Chicago University Press.
12. Combes, P.-P., G. Duranton, and L. Gobillon (2014): "The Costs of Agglomeration: Land Prices in French Cities, " Report, Wharton.
13. Conley, T. G. (1999): "GMM Estimation With Cross Sectional Dependence, " Journal of Econometrics, 92 (1), 1-45. 10.1016/S0304-4076(98)00084-0
14. Davis, D. R., and D. E. Weinstein (2002): "Bones, Bombs, and Break Points: The Geography of Economic Activity, " American Economic Review, 92 (5), 1269-1289. 10.1257/000282802762024502
15. Davis, D. R., and D. E. Weinstein (2008): "A Search for Multiple Equilibria in Urban Industrial Structure, " Journal of Regional Science, 48 (1), 29-65. 10.1111/j.1467-9787.2008.00545.x
16. Davis, M. A., and F. Ortalo-Magné (2011): "Housing Expenditures, Wages, Rents, " Review of Economic Dynamics, 14 (2), 248-261. 10.1016/j.red.2009.12.003
17. Dekle, R., and J. Eaton (1999): "Agglomeration and Land Rents: Evidence From the Prefectures, " Journal of Urban Economics, 46 (2), 200-214. 10.1006/juec.1998.2118
18. Diamond, R. (2013): "The Determinants and Welfare Implications of US Workers' Diverging Location Choices by Skill: 1980-2000, " Report, Stanford Graduate School of Business.
19. Donaldson, D. (2015): "Railroads of the Raj: Estimating the Impact of Transportation Infrastructure, " American Economic Review (forthcoming).
20. Duranton, G., and D. Puga (2004): "Micro-Foundations of Urban Agglomeration Economies, " in Handbook of Regional and Urban Economics, Vol. 4, ed. by J. V. Henderson and J.-F. Thisse. Amsterdam: Elsevier, 2063-2117.
21. Duranton, G., and M. A. Turner (2011): "The Fundamental Law of Road Congestion: Evidence From US Cities, " American Economic Review, 101 (6), 2616-2652. 10.1257/aer.101.6.2616
22. Duranton, G., and M. A. Turner (2012): "Urban Growth and Transportation, " Review of Economic Studies, 79 (4), 1407-1440. 10.1093/restud/rds010
23. Eaton, J., and S. Kortum (2002): "Technology, Geography, and Trade, " Econometrica, 70 (5), 1741-1779. 10.1111/1468-0262.00352
24. Elkins, T. H., and B. Hofmeister (1988): Berlin: Spatial Structure of a Divided City. London-New York: Methuen & Co.
25. Epple, D., B. Gordon, and H. Sieg (2010): "A New Approach to Estimating the Production Function for Housing, " American Economic Review, 100 (3), 905-924. 10.1257/aer.100.3.905
26. Faber, B. (2015): "Trade Integration, Market Size, and Industrialization: Evidence from China's National Trunk Highway System, " Review of Economic Studies (forthcoming).
27. Feder, G. (1939): Arbeitstätte-Wohnstätte. Schriftenreihe der Reichsarbeitsgemeinschaft für Raumforschung an der Technischen Hochschule Berlin. Berlin: Julius Springer. 10.1007/978-3-642-94231-0
28. Fortheringham, S., and M. O'Kelly (1989): Spatial Interaction Models: Formulations and Applications. Dordrecht: Kluwer.
29. Franklin, W. M. (1963): "Zonal Boundaries and Access to Berlin, " World Politics, 16 (1), 1-31. 10.2307/2009249
30. Fujita, M., and P. Krugman (1995): "When Is the Economy Monocentric? Von Thünen and Chamberlain Unified, " Regional Science and Urban Economics, 25 (4), 505-528. 10.1016/0166-0462(95)02098-F
31. Fujita, M., and H. Ogawa (1982): "Multiple Equilibria and Structural Transformation of Non-Monocentric Urban Configurations, " Regional Science and Urban Economics, 12 (2), 161-196. 10.1016/0166-0462(82)90031-X
32. Glaeser, E. L., and D. C. Mare (2001): "Cities and Skills, " Journal of Labor Economics, 19 (2), 316-342. 10.1086/319563
33. Glaeser, E. L., J. Kolko, and A. Saiz (2001): "Consumer City, " Journal of Economic Geography, 1 (1), 27-50. 10.1093/jeg/1.1.27
34. Greenstone, M., R. Hornbeck, and E. Moretti (2010): "Identifying Agglomeration Spillovers: Evidence From Winners and Losers of Large Plant Openings, " Journal of Political Economy, 118 (3), 536-598. 10.1086/653714
35. Grogger, J., and G. Hanson (2011): "Income Maximization and the Selection and Sorting of International Migrants, " Journal of Development Economics, 95 (1), 42-57. 10.1016/j.jdeveco.2010.06.003
36. Hanson, G. H. (1996): "Localization Economies, Vertical Organization, and Trade, " American Economic Review, 86 (5), 1266-1278.
37. Hanson, G. H. (1997): "Increasing Returns, Trade, and the Regional Structure of Wages, " Economic Journal, 107 (1), 113-133. 10.1111/1468-0297.00145
38. Head, K., and T. Mayer (2014): "Gravity Equations: Workhorse, Toolkit, and Cookbook, " in Handbook of International Economics, Vol. 4, ed. by E. Helpman, G. Gopinath, and K. Rogoff. Amsterdam: Elsevier North Holland, 131-196.
39. Henderson, J. V., A. Kuncoro, and M. Turner (1995): "Industrial Development in Cities, " Journal of Political Economy, 103 (5), 1067-1085. 10.1086/262013
40. Herdegen, G. (1992): "Einstellungen zur Deutschen Einheit, " in Handwörterbuch zur Deutschen Einheit, Vol. 4, ed. by W. Weidenfeld and K.-R. Korte. Frankfurt am Main: Campus Verlag.
41. Kalweit, F. (1929): Die Baustellenwerte in Berlin 1928. Berlin: Emro.
42. Kalweit, F. (1937): Die Baustellenwerte in Berlin: Strassen-Verzeichnis, Neubearbeitung Abgeschlossen am 30. Juni 1936. Berlin: Carl Heymanns.
43. Kennan, J., and J. R. Walker (2011): "The Effect of Expected Income on Individual Migration Decisions, " Econometrica, 79 (1), 211-251. 10.3982/ECTA4657
44. Kline, P., and E. Moretti (2014): "Local Economic Development, Agglomeration Economies, and the Big Push: 100 Years of Evidence From the Tennessee Valley Authority, " Quarterly Journal of Economics, 129 (1), 275-331. 10.1093/qje/qjt034
45. Lambrecht, H., and H. Tischner (1969): Der Handel West-Berlins mit der DDR und Osteuropa: Probleme und Möglichkeiten. Berlin: Deutsches Institut für Wirtschaftsforschung.
46. Leyden, F. (1933): Gross-Berlin: Geographie einer Weltstadt. Berlin: Gebr. Mann Verlag.
47. Lucas, R. E. (2000): "Externalities and Cities, " Review of Economic Dynamics, 4 (2), 245-274. 10.1006/redy.2000.0108
48. Lucas, R. E., and E. Rossi-Hansberg (2002): "On the Internal Structure of Cities, " Econometrica, 70 (4), 1445-1476. 10.1111/1468-0262.00338
49. Marshall, A. (1920): Principles of Economics. London: Macmillan.
50. McArthur, D. P., G. Kleppe, I. Thorsen, and J. Uboe (2011): "The Spatial Transferability of Parameters in a Gravity Model of Commuting Flows, " Journal of Transport Geography, 19 (4), 596-605. 10.1016/j.jtrangeo.2010.06.014
51. McDonald, J., and D. McMillen (2010): Urban Economics and Real Estate: Theory and Policy. Hoboken, NJ: John Wiley & Sons.
52. McFadden, D. (1974): "The Measurement of Urban Travel Demand, " Journal of Public Economics, 3 (4), 303-328. 10.1016/0047-2727(74)90003-6
53. Melo, P. C., D. J. Graham, and R. B. Noland (2009): "A Meta-Analysis of Estimates of Urban Agglomeration Economies, " Regional Science and Urban Economics, 39 (3), 332-342. 10.1016/j.regsciurbeco.2008.12.002
54. Michaels, G. (2008): "The Effect of Trade on the Demand for Skill: Evidence From the Interstate Highway System, " Review of Economics and Statistics, 90 (4), 683-701. 10.1162/rest.90.4.683
55. Mills, E. S. (1967): "An Aggregative Model of Resource Allocation in a Metropolitan Centre, " American Economic Review, 57 (2), 197-210.
56. Moretti, E. (2004): "Workers' Education, Spillovers and Productivity: Evidence From Plant-Level Production Functions, " American Economic Review, 94, 656-690. 10.1257/0002828041464623
57. Moretti, E. (2011): "Local Labor Markets, " in Handbook of Labor Economics, Vol. 4b, ed. by D. Card and O. Ashenfelter. Amsterdam: Elsevier North Holland, 1238-1303.
58. Muth, R. (1969): Cities and Housing. Chicago: University of Chicago Press.
59. Office for Statistics Berlin-Brandenburg (2007): Statistical Yearbook of Berlin. Berlin: Office for Statistics Berlin-Brandenburg.
60. Rauch, J. E. (1993): "Productivity Gains From Geographic Concentration of Human Capital, " Journal of Urban Economics, 34 (3), 380-400. 10.1006/juec.1993.1042
61. Redding, S. J., and D. M. Sturm (2008): "The Costs of Remoteness: Evidence From German Division and Reunification, " American Economic Review, 98 (5), 1766-1797. 10.1257/aer.98.5.1766
62. Redding, S. J., D. M. Sturm, and N. Wolf (2011): "History and Industry Location: Evidence From German Airports, " Review of Economics and Statistics, 93 (3), 814-831. 10.1162/REST_a_00096
63. Roback, J. (1982): "Wages, Rents and the Quality of Life, " Journal of Political Economy, 90 (6), 1257-1278. 10.1086/261120
64. Roggenbuch, F. (2008): Das Berliner Grenzgängerproblem. Verflechtung und Systemkonkurrenz vor dem Mauerbau. Berlin-New York: Walter de Gruyter.
65. Rosenthal, S. S., and W. C. Strange (2004): "Evidence on the Nature and Sources of Agglomeration Economics, " in Handbook of Regional and Urban Economics, Vol. 4, ed. by J. V. Henderson and J. F. Thisse. Amsterdam: Elsevier North Holland.
66. Rosenthal, S. S., and W. C. Strange (2008): "The Attenuation of Human Capital Spillovers, " Journal of Urban Economics, 64 (2), 373-389. 10.1016/j.jue.2008.02.006
67. Rossi-Hansberg, E., P.-D. Sarte, and R. I. Owens (2010): "Housing Externalities, " Journal of Political Economy, 118 (3), 485-535. 10.1086/653138
68. Sharp, T. (1975): The Wartime Alliance and the Zonal Division of Germany. Oxford: Clarendon Press.
69. Sveikauskas, L. A. (1975): "The Productivity of Cities, " Quarterly Journal of Economics, 89 (3), 393-413. 10.2307/1885259
70. Timothy, D., and W. C. Wheaton (2001): "Intra-Urban Wage Variation, Employment Location, and Commuting Times, " Journal of Urban Economics, 50 (2), 338-366. 10.1006/juec.2001.2220
71. Valentinyi, Á., and B. Herrendorf (2008): "Measuring Factor Income Shares at the Sectoral Level, " Review of Economic Dynamics, 11 (4), 820-835. 10.1016/j.red.2008.02.003