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Agglomeration Economics

When firms and people are located near each other in cities and in industrial clusters, they benefit in various ways, including by reducing the costs of exchanging goods and ideas. One might assume that these benefits would become less important as transportation and communication costs fall. Paradoxically, however, cities have become increasingly important, and even within cities industrial clusters remain vital.

Agglomeration Economics brings together a group of essays that examine the reasons why economic activity continues to cluster together despite the falling costs of moving goods and transmitting information. The studies cover a wide range of topics and approach the economics of agglomeration from different angles. Together they advance our understanding of agglomeration and its implications for a globalized world.

Table of Contents

Acknowledgments

Introduction

Edward L. Glaeser

1. Estimating Agglomeration Economies with History, Geology, and Worker Effects

Pierre- Philippe Combes, Gilles Duranton, Laurent Gobillon, and Sébastien Roux

2. Dispersion in House Price and Income Growth across Markets: Facts and Theories

Joseph Gyourko, Christopher Mayer, and Todd Sinai

3. Cities as Six- by- Six- Mile Squares: Zipf ’s Law?

Thomas J. Holmes and Sanghoon Lee

4. Labor Pooling as a Source of Agglomeration:An Empirical Investigation

Henry G. Overman and Diego Puga5. Urbanization, Agglomeration, and Coagglomeration of Service Industries

Jed Kolko

6. Who Benefits Whom in the Neighborhood? Demographics and Retail Product Geography

Joel Waldfogel

7. Understanding Agglomerations in Health Care 

Katherine Baicker and Amitabh Chandra

8. The Agglomeration of U.S. Ethnic Inventors 

William R. Kerr

9. Small Establishments/ Big Effects: Agglomeration, Industrial Organization, and Entrepreneurship

Stuart S. Rosenthal and William C. Strange

10. Did the Death of Distance Hurt Detroit and Help New York?

 Edward L. Glaeser and Giacomo A. M. Ponzetto

11. New Evidence on Trends in the Cost of Urban Agglomeration

Matthew E. KahnContributors

Author Index

Subject Index

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