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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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Micro-Foundations of Urban Agglomeration Economies
Gilles Duranton,Diego Puga +1 more
TL;DR: In this paper, the theoretical micro-foundations of urban agglomeration economies are studied, based on sharing, matching, and learning mechanisms, and a handbook chapter is presented.
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Evidence on the nature and sources of agglomeration economies
TL;DR: In this article, the authors consider the empirical literature on the nature and sources of urban increasing returns, also known as agglomeration economies, and show that the effects of aggoglomeration extend over at least three different dimensions.
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Marshall's Scale Economies
TL;DR: In this article, the authors estimate plant level production functions that include variables that allow for two types of scale externalities which plants experie nce in their local industrial environments: externalities from other plants in the same industry locally, usually called localization economies or, in a dynamic context, Marshall, Arrow, Romer [MAR] economies.
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How do regions diversify over time? Industry relatedness and the development of new growth paths in regions
TL;DR: In this paper, the authors analyzed the economic evolution of 70 Swedish regions during the period 1969-2002 using detailed plant-level data and found that the long-term evolution of the economic landscape in Sweden is subject to strong path dependencies.
Journal ArticleDOI
The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States
TL;DR: For example, this article argued that research on cities is different from research on countries, and that work on places within countries needs to consider population, income, and housing prices simultaneously.
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National and International Returns to Scale in the Modern Theory of International Trade
TL;DR: For over a quarter century, the Heck-scher-Ohlin-Samuelson (H-O-S) trade model has thoroughly dominated work in the pure theory of international trade as mentioned in this paper.
Book
Edge City: Life on the New Frontier
TL;DR: A glossary of edge cities can be found in this article, where the authors examine how these Edge Cities are dramatically changing the way most of us live our lives, from the kinds of jobs Edge Cities generate to whether they will ever be good places to fall in love or hold a Fourth of July parade.
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Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach
Glenn Ellison,Edward L. Glaeser +1 more
TL;DR: The authors discusses the prevalence of Silicon Valley-style localizations of individual manufacturing industries in the United States Several models in which firms choose locations by throwing darts at a map are used to test whether the degree of localization is greater than would be expected to arise randomly and to motivate a new index of geographic concentration.
Book
Economics of agglomeration
TL;DR: In this article, the main reasons for the formation of economic clusters involving firms and/or households are analyzed: (i) externalities under perfect competition; (ii) increasing returns under monopolistic competition; and (iii) spatial competition under strategic interaction.
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Industrial Development in Cities
TL;DR: This paper analyzed changes in employment in specific manufacturing industries in cities between 1970 and 1987 and found that the major source of that persistence appears to be persistence in local demand conditions (i.e., persistence in regional comparative advantage), as opposed to other measured or unmeasured urban characteristics.
Related Papers (5)
Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs:
Neil Lee,Andrés Rodríguez-Pose +1 more