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We develop a model with two asymmetric countries. Firms choose the number and the location of plants that they operate. The production of each firm increases when trade costs fall. The fall also induces multinationals to repatriate their production into a single country, which is likely to be...
Persistent link: https://www.econbiz.de/10012776607
This paper studies the geography of outward foreign direct investment (FDI) from subnational regions, specifically California and the rest of the United States. The use of multiple source regions, as opposed to one source, provides more variation in the analysis. At the same time, subnational...
Persistent link: https://www.econbiz.de/10012779639
According to Albert O. Hirschman's famous dichotomy, citizens can express their preferences with their “voice” (by voting with ballots to elect better representatives) and “exit” (by voting with their feet to choose better places to live). Suppose, however, that ballot-voting is...
Persistent link: https://www.econbiz.de/10012903050
While the effects of non-geographic aggregation on inference are well studied in economics, research on geographic aggregation is rather scarce. This knowledge gap together with the use of aggregated spatial units in previous firm location studies result in a lack of understanding of firm...
Persistent link: https://www.econbiz.de/10012941882
overstate the extent of strategic agglomeration. As evidence, we find that public elementary schools cluster more than random …, not because of agglomeration economies, but due to demand density and limited location options. We argue that a better … measurement of strategic agglomeration is to compare across product markets with similar zoning and other location restrictions …
Persistent link: https://www.econbiz.de/10012765731
We examine the causal effect of neighborhood segregation on black entrepreneurship. We address neighborhood sorting by analyzing city averages and omitted variable bias by instrumenting for segregation using historical railroad configurations. We find that segregation has a significant positive...
Persistent link: https://www.econbiz.de/10012968357
In the past decades, gentrification has transformed American central city neighborhoods. In this paper, I estimate a spatial equilibrium model to show that the rising value of high-skilled workers' time contributes to the gentrification of American central cities. I show that the increasing...
Persistent link: https://www.econbiz.de/10012851849
Economic geography equilibria that represent spontaneous agglomeration in a featureless underlying geographic space …
Persistent link: https://www.econbiz.de/10013019397
This paper contributes to the emerging literature investigating agglomeration externalities in developing countries. It … is the first paper to estimate how agglomeration externality generation and reception varies for formal and informal … firms by source. Using establishment level data, we find evidence of both significant agglomeration economies and …
Persistent link: https://www.econbiz.de/10012932525
This paper leverages new measurement of neighborhood amenities to demonstrate that housing prices and rents in U.S. cities are determined nearly as much by proximity to amenities as they are by proximity to employment. We develop a revealed preference measure of amenities using navigations data...
Persistent link: https://www.econbiz.de/10013232596