Full Citation

Title: Urban Growth and its Aggregate Implications

Citation Type: Working Paper

Publication Year: 2019

ISBN:

ISSN:

DOI: 10.3386/w26591

NSFID:

PMCID:

PMID:

Abstract: We develop an urban growth model where human capital spillovers foster entrepreneurship and learning in heterogenous cities. Incumbent residents limit city expansion through planning regulations so that commuting and housing costs do not outweigh productivity gains. The model builds on strong microfoundations, matches key regularities at the city and economy-wide levels, and generates novel predictions for which we provide evidence. It can be quantified relying on few parameters, provides a basis to estimate the main ones, and remains transparent regarding its mechanisms. We examine various counterfactuals to assess quantitatively the effect of cities on economic growth and aggregate income.

Url: https://www.nber.org/papers/w26591

Url: http://www.nber.org/papers/w26591.pdf

User Submitted?: No

Authors: Duranton, Gilles; Puga, Diego

Series Title: NBER Working Papers

Publication Number: 26591

Institution: National Bureau of Economic Research

Pages: 1-57

Publisher Location: Cambridge, MA

Data Collections: IPUMS NHGIS, IPUMS CPS

Topics: Land Use/Urban Organization

Countries: