Open AccessPosted Content
Nursery Cities: Urban Diversity, Process Innovation and the Life-Cycle of Products
Gilles Duranton,Diego Puga +1 more
Reads0
Chats0
TLDR
In this paper, a simple model of process innovation is proposed, where firms learn about their ideal production process by making prototypes and switch to mass-production and relocate to specialised cities with lower costs.Abstract:
A simple model of process innovation is proposed, where firms learn about their ideal production process by making prototypes. We build around this a dynamic general equilibrium model, and derive conditions under which diversified and specialised cities coexist. New products are developed in diversified cities, trying processes borrowed from different activities. On finding their ideal process, firms switch to mass-production and relocate to specialised cities with lower costs. When in equilibrium, this configuration welfare-dominates those with only diversified or only specialised cities. We find strong evidence of this relocation pattern in establishment relocations across French employment areas 1993u1996.read more
Citations
More filters
Journal ArticleDOI
What Underlies Localization and Urbanization Economies? Evidence from the Location of New Firms
TL;DR: In this article, the authors examine the location decisions of new manufacturing firms in Spain at the city level and for narrowly defined industries (three-digit level) to obtain estimates that reflect the importance of localization and urbanization economies in each industry.
Posted Content
Transport Infrastructure, Agglomeration Economies, and Firm Birth: Empirical Evidence from Portugal
TL;DR: In this paper, the effect of large-scale road investment together with the role played by agglomeration economies for firm birth in 13 industry sectors and 9 service sectors was investigated.
Journal ArticleDOI
Mountains in a flat world: why proximity still matters for the location of economic activity
TL;DR: The authors argue that not all territories have the same capacity to maximize the benefits and opportunities and minimize the risks linked to globalization, and that the interactions of these forces in the close geographical proximity of large urban areas give shape to a much more complex geography of the world economy.
Journal ArticleDOI
Consumption amenities and city population density
TL;DR: A simple, static general equilibrium model demonstrates that moderate differences in metro areas' consumption amenities can cause extremely large differences in their population density and that such amenities are more strongly capitalized into housing prices than into wages as mentioned in this paper.
Journal ArticleDOI
Firm-level volatility and exports
TL;DR: This paper showed that the share of exports in the total sales of a firm has a positive and substantial impact on the volatility of its sales, and showed that firms with a larger export share have more volatile domestic sales and less volatile exports.
References
More filters
Book
Principles of Economics
TL;DR: In this article, the authors present a survey of the general relations of demand, supply, and value in terms of land, labour, capital, and industrial organization, with an emphasis on the fertility of land.
Book
The Economy of Cities
TL;DR: In this article, the authors studied the economy of cities and the main social problems that humanity has and the greatest source of creativity, innovation and development opportunities to solve those problems, which is relevant for a number of reasons: first of all, because most of the planet's population is grouped in them.
Posted Content
Growth in Cities
Edward L. Glaeser,Edward L. Glaeser,Edward L. Glaeser,Hedi Kallal,Jose A. Scheinkman,Jose A. Scheinkman,Jose A. Scheinkman,Andrei Shleifer,Andrei Shleifer +8 more
TL;DR: In this paper, the authors used a new data set on the growth of large industries in 170 U.S. cities between 1956 and 1987 and found that local competition and urban variety, but not regional specialization, encourage employment growth in industries.
Journal ArticleDOI
Innovation in cities: Science-based diversity, specialization and localized competition
TL;DR: In this article, the authors consider the effect of the composition of economic activity on innovation and test whether the specialization of economic activities within a narrow concentrated set of activities is more conducive to knowledge spillovers or if diversity, by bringing together complementary activities, better promotes innovation.
Related Papers (5)
Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs:
Neil Lee,Andrés Rodríguez-Pose +1 more