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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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The Effects of Inequality, Density, and Heterogeneous Residential Preferences on Urban Displacement and Metropolitan Structure: An Agent-Based Model
TL;DR: In this paper, an agent-based model of urban settlement, agglomeration, displacement, and sprawl is presented, demonstrating a simplified mechanism of how urban displacement and gentrification can be sensitive to income inequality, density, and varied preferences for different types of amenities.
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Task Trade and the Size Distribution of Cities
TL;DR: In this article, the authors provide a model of a system of cities in which ex ante identical locations specialize in tasks that differ in their skill intensity, resulting in a unique size distribution of cities.
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Labor Market Density and Increasing Returns to Scale: How Strong is the Evidence?
TL;DR: This article examined the relationship between density and productivity across industries and over both states and time, and showed that the evidence for agglomeration effects is indeed quite robust, even within industries, providing evidence for the presence of Marshallian externalities.
Three essays in urban and regional economics
TL;DR: Jiang et al. as discussed by the authors examined whether economic self-interest associated with homeownership motivates homeowners to vote more than renters in U.S. local elections, and developed a new method to identify and control for selection when estimating the productivity effects of city size.
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:
Neil Lee,Andrés Rodríguez-Pose +1 more