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The Costs of Agglomeration: Land Prices in French Cities

Combes, Pierre-Philippe; Duranton, Gilles; Gobillon, Laurent - C.E.P.R. Discussion Papers - 2012

We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French land price data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.041. Our approach also yields a number of intermediate outputs of independent...

Persistent link: https://www.econbiz.de/10011083617

The Henry George Theorem in a second-best world

Behrens, Kristian; Kanemoto, Yoshitsugu; Murata, Yasusada - C.E.P.R. Discussion Papers - 2010

The Henry George Theorem (HGT), or the golden rule of local public finance, states that, in first-best economies, the fiscal surplus, defined as aggregate land rents minus aggregate losses from increasing returns to scale activities, is zero at optimal city sizes. We derive a general second-best...

Persistent link: https://www.econbiz.de/10008784737

Agglomeration theory with heterogeneous agents

Behrens, Kristian; Robert-Nicoud, Frédéric - C.E.P.R. Discussion Papers - 2014

This chapter surveys recent developments in agglomeration theory within a unifying framework. We highlight how … locational fundamentals, agglomeration economies, the spatial sorting of heterogeneous agents, and selection effects affect the …

Persistent link: https://www.econbiz.de/10011084057

The productivity advantages of large cities: Distinguishing agglomeration from firm selection

Combes, Pierre-Philippe; Duranton, Gilles; Gobillon, Laurent - C.E.P.R. Discussion Papers - 2009

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

Survival of the Fittest in Cities: Agglomeration, Selection, and Polarisation

Behrens, Kristian; Robert-Nicoud, Frédéric - C.E.P.R. Discussion Papers - 2008

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

Inter-regional and International Trade: Seventy Years After Ohlin

Behrens, Kristian; Gaigné, Carl; Ottaviano, Gianmarco; … - C.E.P.R. Discussion Papers - 2003

We study the impact of falling trade costs and falling national transport costs on the economic geography of countries involved in an integration process. Two regions between which labour is mobile form each country, but there is no international factor mobility. Commodities can be traded both...

Persistent link: https://www.econbiz.de/10005667127

Labor Differentiation and Agglomeration in General Equilibrium

Berliant, Marcus; Zenou, Yves - C.E.P.R. Discussion Papers - 2012

The aim of this paper is to explore the structure of cities as a function of labor differentiation, gains to trade, a fixed cost for constructing the transportation network, a variable cost of commodity transport, and the commuting costs of consumers. Firms use different types of labor to...

Persistent link: https://www.econbiz.de/10011083732

Labour Specialization and City Formation

Berliant, Marcus; Zenou, Yves - C.E.P.R. Discussion Papers - 1995

This paper explores the formation of cities through labour specialization, gains to trade, a fixed cost for the transportation network, imperfect competition between firms, and the commuting costs of consumers. The model uses a very general setting, allowing a multidimensional location space and...

Persistent link: https://www.econbiz.de/10005498079

The mechanisms of spatial mismatch

Gobillon, Laurent; Selod, Harris; Zenou, Yves - C.E.P.R. Discussion Papers - 2005

The Spatial Mismatch Hypothesis (SMH) argues that low-skilled minorities residing in U.S. inner cities experience poor labour-market outcomes because they are disconnected from suburban job opportunities. This assumption gave rise to an abundant empirical literature, which confirmed this...

Persistent link: https://www.econbiz.de/10005114305

The Effect of Segregation and Spatial Mismatch on Unemployment: Evidence from France

Gobillon, Laurent; Selod, Harris - C.E.P.R. Discussion Papers - 2007

In this paper, we investigate how residential segregation and bad physical access to jobs contribute to urban unemployment in the Paris region. We first survey the general mechanisms according to which residential segregation and spatial mismatch can have adverse labour-market outcomes. We then...

Persistent link: https://www.econbiz.de/10005656303