This paper estimates a heterogeneous sorting model for firms, employing a semiparametric Poisson approach. We show that there is an equivalence relation between a locally weighted Logit and Poisson model. We apply our model to estimate firm-specific preferences of business services firms for...

We study neighbourhood externalities caused by large public investments in poor neighbourhoods. A stylised theory of a linear city is proposed to guide interpretation of the magnitude and attenuation of the external effects generated by these public investments. We use a large Dutch nationwide...

Travel congestion is considered as the most important negative externality of urban agglomerations. Despite the recommendations of urban and transport researchers, congestion tolls are rarely applied, mainly because these policies are not generally accepted by a broad public. Recently,...

In this paper I measure the impact of urbanisation and localisation economies on commercial rents (offices and industrial buildings) using unique micro-data on both commercial property transactions, as well as all firm (establishment) locations. I add to the literature in three important ways....

New economic geography focuses on the impact of falling transport costs on the spatial distribution of activities. However, it disregards the role of technological innovations, which are central to modern economic growth, as well as the role of migration costs, which are a strong impediment to...