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Nursery Cities: Urban Diversity, Process Innovation and the Life-Cycle of Products
Gilles Duranton,Diego Puga +1 more
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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
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How Should Suburbs Help Their Central Cities? Growth- and Welfare-Enhancing Intrametropolitan Fiscal Distributions
TL;DR: In this article, the authors review the basic determinants of output growth, with a focus on productivity growth in cities, and explore the effects of a particular distortion in politically fragmented metropolitan areas.
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RETURNS TO LOCATION IN RETAIL : Investigating the relevance of market size and regional hierarchy
TL;DR: In this article, the authors investigated returns to location in the retail sector and further analyzed the systematic variations across central and peripheral retail markets, as well as across different types of re...
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Local development, urban economies and aggregate growth
TL;DR: In this paper, the authors provide an overview of the results of a recent research project by the Bank of Italy on local development, urban economies and aggregate growth in Italy, and document the interplay between historical origins, congestion costs, and agglomeration benefits in shaping the Italian urban system.
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Explaining New Firm Survival: Is the Firm, Owner, or Agglomeration at Fault?
Matt Saboe,Simon Condliffe +1 more
TL;DR: The authors empirically estimates the effect of several sources of agglomeration on new firm survival while controlling for firm, entrepreneur, and regional variables using a discrete-time hazard model.
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Empirical estimation of agglomeration economies associated with research facilities
TL;DR: This paper employed a new technique to estimate agglomeration economies, which are omitted from standard Input-Output (I-O) models, by employing a demographic projection model that estimates employment, population, and income in the region without the facility's contribution to the economic landscape.
References
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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.
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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.
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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.
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Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs:
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