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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.
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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.
References
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Economics of Agglomeration: Cities, Industrial Location, and Regional Growth
TL;DR: In this article, the authors provide the first unifying analysis of the range of economic reasons for the clustering of firms and households and explain further the trade-off between various forms of increasing returns and different types of mobility costs.
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The Sizes and Types of Cities
TL;DR: In this paper, the authors present a simple general equilibrium model of an economy where production and consumption occur in cities and analyze how factor rewards and cost of living vary with city size.
Posted Content
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.
Journal ArticleDOI
Multiple equilibria and structural transition of non-monocentric urban configurations☆
Masahisa Fujita,Hideaki Ogawa +1 more
TL;DR: In this paper, a model of non-monocentric urban land use is presented, which requires neither employment nor residential location to be specified a priori, and is capable of yielding multicentric pattern as well as monocentric and dispersed patterns, and generally yields multiple equilibria under each fixed set of parameter values.
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The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?
Glenn Ellison,Edward L. Glaeser +1 more
TL;DR: In this article, the authors use the term "natural advantage" fairly broadly to identify effects of natural advantages without overfitting by imposing cross-industry restrictions requiring the sensitivity of location decisions to the cost of a particular input to be related to the intensity with which the industry uses the input.
Related Papers (5)
Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs:
Neil Lee,Andrés Rodríguez-Pose +1 more