applied to investigate competition, agglomeration, spillover effects. The method offers to (i) have carry out estimations at … significance of differences. To illustrate the method, we use Hungarian data and compare estimates of agglomeration externalities …

economy with an urban location and a rural one. Agglomeration economies make urban dwellers benefit from a larger population …, congestion costs associated with a too large population size limit the process of urban-rural transformation. Firms in the urban … equilibrium the urban location is inefficiently small because households fail to internalize the agglomeration economies and the …

There is a large literature on the existence of agglomeration economies, as shown in the surveys by Moomaw (1983) or …