Heterogeneous Agglomeration

Faggio, G., Silva, O. and Strange, W.C. 2017. Heterogeneous Agglomeration. Review of Economics and Statistics. 99 (1), pp. 80-94. https://doi.org/10.1162/REST_a_00604

TitleHeterogeneous Agglomeration
TypeJournal article
AuthorsFaggio, G., Silva, O. and Strange, W.C.

Many prior treatments of agglomeration explicitly or implicitly assume that all industries agglomerate for the same reasons. This paper uses UK establishment-level coagglomeration data to document substantial heterogeneity across industries in the microfoundations of agglomeration economies. It finds robust evidence of organizational and adaptive agglomeration forces as discussed by Chinitz (1961), Vernon (1960), and Jacobs (1969). These forces interact with the traditional Marshallian (1890) factors of input sharing, labor pooling, and knowledge spillovers, establishing a previously unrecognized complementarity between the approaches of Marshall and Jacobs, as well as others, to the analysis of agglomeration.

JournalReview of Economics and Statistics
Journal citation99 (1), pp. 80-94
PublisherMIT Press
Accepted author manuscript
Digital Object Identifier (DOI)https://doi.org/10.1162/REST_a_00604
Web address (URL)http://www.mitpressjournals.org/loi/rest
Publication dates
Published online23 Mar 2016
Published in printMar 2017
Published23 Mar 2016

Related outputs

Estimating the Value of Discounted Rental Accommodation for London’s ‘Squeezed’ Key Workers
Urwin, P., Gould, M. and Faggio, G. 2016. Estimating the Value of Discounted Rental Accommodation for London’s ‘Squeezed’ Key Workers. Dolphin Square Foundation.

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