Showing 1 - 10 of 112
Firms are more productive on average in larger cities. Two explanations have been offered: agglomeration economies … selection model and a standard model of agglomeration. Stronger selection in larger cities left-truncates the productivity … distribution whereas stronger agglomeration right-shifts and dilates the distribution. We assess the relative importance of …
Persistent link: https://www.econbiz.de/10005791878
agglomeration economies. This paper provides a microeconomically founded model of vertical city differentiation in which the latter … two mechanisms (`agglomeration' and `selection') operate simultaneously. Our model is both rich and tractable enough to …
Persistent link: https://www.econbiz.de/10005792517
into large cities, because large cities select more productive entrepreneurs and firms, or because of agglomeration … between them. The model can replicate stylised facts about sorting, agglomeration, and selection in cities. It can also …
Persistent link: https://www.econbiz.de/10008554236
cross-section OLS and dynamic panel GMM estimation. Agglomeration is measured alternatively through measures of urbanization … sets and variable definitions, we find evidence that supports the "Williamson hypothesis": agglomeration boosts GDP growth …
Persistent link: https://www.econbiz.de/10005666860
We use Italian firm-level data to investigate the impact of trade openness on the distribution of firms across marginal cost levels. In so doing, we implement a procedure that allows us to control not only for the standard transmission bias identified in firm-level TFP regressions but also for...
Persistent link: https://www.econbiz.de/10005789031
In models with heterogeneous firms trade integration has a positive impact on aggregate productivity through the selection of the best firms as import competition drives the least productive ones out of the market. To quantify the impact of firm selection on productivity, we calibrate and...
Persistent link: https://www.econbiz.de/10005791456
We analyze the role of optimal income taxation across different local labor markets. Should labor in large cities be taxed differently than in small cities? We find that a planner who needs to raise revenue and is constrained by free mobility of labor across cities does not choose equal taxes...
Persistent link: https://www.econbiz.de/10011145397
Individual earnings are higher in bigger cities. We consider three reasons: spatial sorting of initially more productive workers, static advantages associated with workers' current location, and learning by working in big cities. Using rich administrative data for Spain, we find that workers in...
Persistent link: https://www.econbiz.de/10011084709
larger cities, but also to greater frictions through congestion and other negative effects of agglomeration. Using data on …
Persistent link: https://www.econbiz.de/10008784710
This Paper examines city formation in a country whose urban population is growing steadily over time, with new cities required to accommodate this growth. In contrast to most of the literature there is immobility of housing and urban infrastructure, and investment in these assets is taken on the...
Persistent link: https://www.econbiz.de/10005788954