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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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Wage Premia in Employment Clusters: Agglomeration Economies or Worker Heterogeneity?
Shihe Fu,Stephen L. Ross +1 more
TL;DR: In this article, a worker's residential location is used as a proxy for their unobservable productivity attributes in order to test whether estimated work location wage premia are robust to the inclusion of these controls.
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R&D (Re)location A Bird’s Eye (Re)view
TL;DR: In this paper, the authors build a framework for the analysis of research and development offshoring and outsourcing that encompasses several strands of the economics literature and surveys the predictions from key theoretical models advanced in the literature.
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Determinants of Entry and Exit : The Significance of Demand and Supply Conditions at the Regional Level
TL;DR: Determinants of entry and exit: The Significance of demand and supply conditions at the regional level as mentioned in this paper, and the importance of demand/supply conditions at a regional level.
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Shaping Dimensions of Urban Complexity: The Role of Economic Structure and Socio-Demographic Local Contexts
TL;DR: In this article, a multivariate analysis of individual dimensions of urban complexity is presented to assess socioeconomic transformations in contemporary cities, showing that local-scale complexity increases with urban concentration, population growth and average per-capita income.
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The Henry George Theorem in a second-best world
TL;DR: In this article, the authors derive a second-best HGT that relates the fiscal surplus to the excess burden expressed as an extended Harberger formula in distorted economies where product differentiation and increasing returns are the sources of agglomeration economies and city governments levy property taxes.
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.
Related Papers (5)
Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs:
Neil Lee,Andrés Rodríguez-Pose +1 more