Hornbeck, Richard; Michaels, Guy; Rauch, Ferdinand - National Bureau of Economic Research - 2024
We examine "agglomeration shadows" that emerge around large cities, which discourage some economic activities in nearby … areas. Identifying agglomeration shadows is complicated, however, by endogenous city formation and "wave interference" that … estimate agglomeration shadows cast on nearby areas. We find that empirically, as in the simulations, detectable agglomeration …