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Is It What We Do or How We Do It? New Evidence on Agglomeration Economies and Metropolitan Growth

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  • Stephen Malpezzi
  • Kiat‐Ying Seah
  • James D. Shilling

Abstract

This paper uses data on U.S. metropolitan areas from 1970 to 1999 to examine the extent to which recent increases in earnings are attributable to agglomeration economies. We decompose the total change in earnings over the 1970–1999 period into components attributable to changes in relative growth, industry mix and interaction effects. We find strong evidence that relative growth matters more than industry mix. In addition, we find that relative growth effects are related to both localization and urbanization economies.

Suggested Citation

  • Stephen Malpezzi & Kiat‐Ying Seah & James D. Shilling, 2004. "Is It What We Do or How We Do It? New Evidence on Agglomeration Economies and Metropolitan Growth," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 32(2), pages 265-295, June.
    • Handle: RePEc:bla:reesec:v:32:y:2004:i:2:p:265-295
    DOI: 10.1111/j.1080-8620.2004.00092.x
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    References listed on IDEAS

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    1. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, December.
    2. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    3. Sukkoo Kim, 1999. "Urban Development in the United States, 1690-1990," NBER Working Papers 7120, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2007. "Agglomeration, Innovation and Regional Development: Theoretical Perspectives and Meta-Analysis," Tinbergen Institute Discussion Papers 07-079/3, Tinbergen Institute.
    2. Kang, Wensheng, 2011. "Housing price dynamics and convergence in high-tech metropolitan economies," The Quarterly Review of Economics and Finance, Elsevier, vol. 51(3), pages 283-291, June.
    3. Nica, M., 2010. "Small Business Clusters in Oklahoma: MAR or Jacobs Effects?," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(2).

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