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Title: Some Evidence on the Nature of Urbanization Economies

Citation Type: Working Paper

Publication Year: 2009

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Abstract: Urbanization economies the effects on productivity and utility created endogenously bylarger cities are a fundamental component of both the economic geography of modernsocieties and the perpetuation of innovation and economic growth at a national level. Citiesaccount for vast majorities of population and even larger proportions of production andinnovation in all advanced economies. The nature of these endogenous effects of city sizeis thus of considerable importance. Krupka (2008) presents a general model in whichexogenous variation in local productivity (natural advantage) and development constraintsgenerate covariation in local incomes, housing prices and population. In that model, thestrength of the correlation amongst these variables depends on the nature of the dominanturbanization economy (or diseconomy). This paper looks at the data over the last severaldecades and finds that the data is consistent with city size increasing consumer/residenthappiness and/or reducing productivity of employers.

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Authors: Krupka, Douglas

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Publication Number: 4573

Institution: Institute for the Study of Labor

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Publisher Location: Bonn, Germany

Data Collections: IPUMS USA

Topics: Other

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