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Agglomeration economies and productivity differences in US cities

Agglomeration economies and productivity differences in US cities
Agglomeration economies and productivity differences in US cities
Plant-level data from the Longitudinal Research Database of the US Bureau of the Census are employed to estimate the impact of agglomeration economies on industry productivity across US metropolitan areas. This analysis seeks to remedy three shortcomings of previous empirical studies of agglomeration economies: reliance on aggregate spatial or sectoral data; lack of attention to spatial dependence in data; and representation of agglomeration economies with vague proxies such as city-size. We show how a number of establishment-, industry-, and city-specific factors influence labor productivity across US cities, and we pay particular attention to separating the influence of different kinds of agglomeration economies on firm efficiency. Here we follow Marshall's Principles of Economics in examining the spatial concentration of input–output linkages, the character of local labor pools and embodied technological spillovers.
Agglomeration economies, labor productivity, US cities
1468-2702
407-432
Rigby, D.L.
1443bb00-f08b-42c8-86bd-2b4d6adab6b0
Essletzbichler, J.
9cc8458b-a2ed-40e3-8459-c801117a56ec
Rigby, D.L.
1443bb00-f08b-42c8-86bd-2b4d6adab6b0
Essletzbichler, J.
9cc8458b-a2ed-40e3-8459-c801117a56ec

Rigby, D.L. and Essletzbichler, J. (2002) Agglomeration economies and productivity differences in US cities. Journal of Economic Geography, 2 (4), 407-432. (doi:10.1093/jeg/2.4.407).

Record type: Article

Abstract

Plant-level data from the Longitudinal Research Database of the US Bureau of the Census are employed to estimate the impact of agglomeration economies on industry productivity across US metropolitan areas. This analysis seeks to remedy three shortcomings of previous empirical studies of agglomeration economies: reliance on aggregate spatial or sectoral data; lack of attention to spatial dependence in data; and representation of agglomeration economies with vague proxies such as city-size. We show how a number of establishment-, industry-, and city-specific factors influence labor productivity across US cities, and we pay particular attention to separating the influence of different kinds of agglomeration economies on firm efficiency. Here we follow Marshall's Principles of Economics in examining the spatial concentration of input–output linkages, the character of local labor pools and embodied technological spillovers.

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Published date: 2002
Keywords: Agglomeration economies, labor productivity, US cities

Identifiers

Local EPrints ID: 14907
URI: http://eprints.soton.ac.uk/id/eprint/14907
ISSN: 1468-2702
PURE UUID: 7b0a48c5-9f29-48b2-a189-5dee42189ad3

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Date deposited: 09 Mar 2005
Last modified: 15 Mar 2024 05:32

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Contributors

Author: D.L. Rigby
Author: J. Essletzbichler

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