Geography, Industrial Organization, and Agglomeration

Abstract

This paper makes two contributions to the empirical literature on agglomeration economies. First, the paper uses a unique and rich database in conjunction with mapping software to measure the geographic extent of agglomerative externalities. Previous papers have been forced to assume that agglomeration economies are club goods that operate at a metropolitan scale. Second, the paper tests for the existence of organizational agglomeration economies of the kind studied qualitatively by Saxenian (1994). This is a potentially important source of increasing returns that previous empirical work has not considered. Results indicate that localization economies attenuate rapidly and that industrial organization affects the benefits of agglomeration.

Do spatially targeted redevelopment programs spillover?

“…12 We also tried estimating a propensity score model using probit regressions, these results have even fewer statistically significant variables than the linear probability results presented here. 13 Although the D&B does not contain all business activity in the U.S., the omissions from the data are considered sufficiently random so that the data is representative of the spatial distribution of the business activity (Holmes, 1998 andRosenthal andStrange, 2003). 14 The federal government also offers a less generous Work Opportunity or Welfare to Work tax credit to establishments outside of the EZ area who employ youth (aged 18 to 24) living in EZ areas.…”

Spatial concentration and location dynamics in logistics: the case of a Dutch province

“…are strongest between firms located on a short distance from each other, as these attenuate rapidly over the first few kilometers and then attenuate much more slowly (Rosenthal and Strange, 2003).…”

Entrepreneurship and Market Size: The Case of Young College Graduates in Italy

“…where Entrepr ijt is a dummy variable equal to one if the individual i working in province j and interviewed at time t is an entrepreneur; DEN is the province of work's population density (our urbanization variable), X indicates the personal observable characteristics, t the year-of-interview dummies, and RFE the region-specific fixed effects, capturing, for instance, the impact of local taxes or the presence of natural advantage or amenities (see Ciccone (2002) and Rosenthal and Strange, 2003).…”