Maré, David C.; Graham, Daniel J. - In: Journal of Urban Economics 75 (2013) C, pp. 44-56
This paper examines three key issues encountered when estimating the relationship between agglomeration and multi … factor productivity (‘agglomeration elasticities’): the sorting of heterogeneous firms, the convexity of agglomeration … dimensions, and to estimate separate agglomeration elasticities across industries and regions. Sorting leads to upward biased …