Combes, Pierre-Philippe; Duranton, Gilles; Gobillon, Laurent - Institute for the Study of Labor (IZA) - 2012
larger cities left-truncates the productivity distribution whereas stronger agglomeration right-shifts and dilates the … cities toughen competition, allowing only the most productive to survive) and agglomeration economies (larger cities promote … interactions that increase productivity), possibly reinforced by localised natural advantage. To distinguish between them, we nest …