IDEAS home Printed from https://ideas.repec.org/a/eee/juecon/v91y2016icp13-25.html
   My bibliography  Save this article

Agglomeration within an urban area

Author

Listed:
  • Billings, Stephen B.
  • Johnson, Erik B.

Abstract

This paper utilizes a newly created index for colocalization to estimate the determinants of industrial agglomeration within a single urban area. Our new index directly incorporates the location of individual establishments while controlling for the Modifiable Areal Unit Problem (MAUP) in order to create this measure of spatial similarity between two industries. We estimate that proximity to transportation infrastructure and consumers as well as knowledge spillovers largely explain patterns of agglomeration. We find a smaller role for input–output linkages and consumption externalities for retail and consumer service industries.

Suggested Citation

  • Billings, Stephen B. & Johnson, Erik B., 2016. "Agglomeration within an urban area," Journal of Urban Economics, Elsevier, vol. 91(C), pages 13-25.
    • Handle: RePEc:eee:juecon:v:91:y:2016:i:c:p:13-25
    DOI: 10.1016/j.jue.2015.11.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0094119015000704
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jue.2015.11.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. William R. Kerr & Scott Duke Kominers, 2015. "Agglomerative Forces and Cluster Shapes," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 877-899, October.
    2. Brian T. McCann & Timothy B. Folta, 2009. "Demand‐ and Supply‐Side Agglomerations: Distinguishing between Fundamentally Different Manifestations of Geographic Concentration," Journal of Management Studies, Wiley Blackwell, vol. 46(3), pages 362-392, May.
    3. Fu, Shihe, 2007. "Smart Cafe Cities: Testing human capital externalities in the Boston metropolitan area," Journal of Urban Economics, Elsevier, vol. 61(1), pages 86-111, January.
    4. Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Spatial concentration and plant-level productivity in France," Journal of Urban Economics, Elsevier, vol. 69(2), pages 182-195, March.
    5. Billings, Stephen B. & Johnson, Erik B., 2012. "A non-parametric test for industrial specialization," Journal of Urban Economics, Elsevier, vol. 71(3), pages 312-331.
    6. Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Spatial concentration and plant-level productivity in France," Journal of Urban Economics, Elsevier, vol. 69(2), pages 182-195, March.
    7. Anas, Alex, 2007. "A unified theory of consumption, travel and trip chaining," Journal of Urban Economics, Elsevier, vol. 62(2), pages 162-186, September.
    8. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    9. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1077-1106.
    10. Gilles Duranton & Henry G. Overman, 2008. "Exploring The Detailed Location Patterns Of U.K. Manufacturing Industries Using Microgeographic Data," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 213-243, February.
    11. Jofre-Monseny, Jordi & Marín-López, Raquel & Viladecans-Marsal, Elisabet, 2011. "The mechanisms of agglomeration: Evidence from the effect of inter-industry relations on the location of new firms," Journal of Urban Economics, Elsevier, vol. 70(2-3), pages 61-74, September.
    12. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
    13. Michael Greenstone & Richard Hornbeck & Enrico Moretti, 2010. "Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 536-598, June.
    14. Timothy Folta & Brian Mccann, 2009. "Demand- and supply-side agglomerations : Distinguishing between fundamentally different manifestations of geographic concentration," Post-Print hal-02311825, HAL.
    15. Konishi, Hideo, 2005. "Concentration of competing retail stores," Journal of Urban Economics, Elsevier, vol. 58(3), pages 488-512, November.
    16. repec:bla:econom:v:61:y:1994:i:242:p:125-36 is not listed on IDEAS
    17. Mohammad Arzaghi & J. Vernon Henderson, 2008. "Networking off Madison Avenue," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(4), pages 1011-1038.
    18. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    19. Barlet, M. & Briant, A. & Crusson, L., 2013. "Location patterns of service industries in France: A distance-based approach," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 338-351.
    20. Cassey, Andrew J. & Smith, Ben O., 2014. "Simulating confidence for the Ellison–Glaeser index," Journal of Urban Economics, Elsevier, vol. 81(C), pages 85-103.
    21. repec:hal:wpspec:info:hdl:2441/c8dmi8nm4pdjkuc9g8mc6ihim is not listed on IDEAS
    22. Rosenthal, Stuart S. & Strange, William C., 2008. "The attenuation of human capital spillovers," Journal of Urban Economics, Elsevier, vol. 64(2), pages 373-389, September.
    23. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    24. Eric D. Gould & B. Peter Pashigian & Canice J. Prendergast, 2005. "Contracts, Externalities, and Incentives in Shopping Malls," The Review of Economics and Statistics, MIT Press, vol. 87(3), pages 411-422, August.
    25. repec:hal:spmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8mc6ihim is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The Skyline versus the Sprawl-line: CO2 Emissions and Building Types in New York City
      by Jason Barr in Skynomics Blog on 2020-09-16 12:35:23

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    2. Bartelme, Dominick & Ziv, Oren, 2023. "JUE Insight: Firms and industry agglomeration," Journal of Urban Economics, Elsevier, vol. 133(C).
    3. Stephen Sheppard, 2014. "Culture Concentration," Department of Economics Working Papers 2014-04, Department of Economics, Williams College, revised Nov 2014.
    4. Edilberto Tiago Almeida & Raul Mota Silveira Neto & Jaime Macedo Brito Bastos & Rubens Lopes Pereira Silva, 2021. "Location patterns of service activities in large metropolitan areas: the Case of São Paulo," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(2), pages 451-481, October.
    5. Changcun Wen & Jiaru Zheng & Bao Hu & Qingning Lin, 2022. "Study on the Spatiotemporal Evolution and Influencing Factors of Agricultural Carbon Emissions in the Counties of Zhejiang Province," IJERPH, MDPI, vol. 20(1), pages 1-28, December.
    6. Eda Ustaoglu & Brendan Williams, 2022. "Institutional Settings and Effects on Agricultural Land Conversion: A Global and Spatial Analysis of European Regions," Land, MDPI, vol. 12(1), pages 1-35, December.
    7. Brad Humphreys & Josh Matti, 2018. "The Spatial Distribution of Urban Consumer Service Firms: Evidence from Yelp Reviews," Working Papers 18-03, Department of Economics, West Virginia University.
    8. Liu, Zheming & Zeng, Saixing & Jin, Zhizhou & Shi, Jonathan Jingsheng, 2022. "Transport infrastructure and industrial agglomeration: Evidence from manufacturing industries in China," Transport Policy, Elsevier, vol. 121(C), pages 100-112.
    9. Stephen Sheppard & Michael Hellstern, 2014. "Fatal Attraction: health care agglomeration and its consequences," Department of Economics Working Papers 2014-05, Department of Economics, Williams College, revised Nov 2014.
    10. Craig Wesley Carpenter & Anders Van Sandt & Scott Loveridge, 2022. "Measurement error in US regional economic data," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 57-80, January.
    11. Yao, Yongling & Pan, Haozhi & Cui, Xiaoyu & Wang, Zhen, 2022. "Do compact cities have higher efficiencies of agglomeration economies? A dynamic panel model with compactness indicators," Land Use Policy, Elsevier, vol. 115(C).
    12. Shengxia Xu & Qiang Liu & Huihui Sun, 2022. "Economic coordination development from the perspective of cross‐regional urban agglomerations in China," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(S2), pages 36-59, November.
    13. Kentaro Nakajima & Kensuke Teshima, 2018. "Identifying Neighborhood Effects among Firms: Evidence from Location Lotteries of the Tokyo Tsukiji Fish Market," 2018 Meeting Papers 575, Society for Economic Dynamics.
    14. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    15. Xiaofeng Zhao & Mingming Zhang & Ying Li & Xianjin Huang & Baiyuan Wang & Lin Zhang, 2020. "Urban residential land expansion and agglomeration in China: a spatial analysis approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5317-5335, August.
    16. Edilberto Tiago de Almeida & Raul da Mota Silveira Neto & Roberta de Moraes Rocha, 2022. "Manufacturing location patterns in Brazil," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 839-873, August.
    17. Hakan Yilmazkuday, 2024. "Welfare costs of shopping trips," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(1), pages 241-264, June.
    18. John Rand & Finn Tarp & Neda Trifković & Helge Zille, 2019. "Industrial agglomeration in Myanmar," WIDER Working Paper Series wp-2019-3, World Institute for Development Economic Research (UNU-WIDER).
    19. repec:zbw:bofrdp:2015_027 is not listed on IDEAS
    20. Ashish Arora & Michelle Gittelman & Sarah Kaplan & John Lynch & Will Mitchell & Nicolaj Siggelkow & Juan Alcácer & Minyuan Zhao, 2016. "Zooming in: A practical manual for identifying geographic clusters," Strategic Management Journal, Wiley Blackwell, vol. 37(1), pages 10-21, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    2. William R. Kerr & Scott Duke Kominers, 2015. "Agglomerative Forces and Cluster Shapes," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 877-899, October.
    3. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    4. Kristy Buzard & Gerald A. Carlino & Jake Carr & Robert M. Hunt & Tony E. Smith, 2015. "Localized Knowledge Spillovers: Evidence from the Agglomeration of American R&D Labs and Patent Data," Working Papers 15-3, Federal Reserve Bank of Philadelphia.
    5. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    6. repec:zbw:bofrdp:2015_027 is not listed on IDEAS
    7. Aaron Chatterji & Edward Glaeser & William Kerr, 2014. "Clusters of Entrepreneurship and Innovation," Innovation Policy and the Economy, University of Chicago Press, vol. 14(1), pages 129-166.
    8. repec:bof:bofrdp:urn:nbn:fi:bof-201512111472 is not listed on IDEAS
    9. Gerald A. Carlino & Jake Carr & Robert M. Hunt & Tony E. Smith, 2010. "The agglomeration of R&D labs," Working Papers 10-33, Federal Reserve Bank of Philadelphia.
    10. repec:zbw:bofrdp:urn:nbn:fi:bof-201512111472 is not listed on IDEAS
    11. Jordi Jofre-Monseny & Raquel Marín-López & Elisabet Viladecans-Marsal, 2012. "What underlies localization and urbanization economies? Evidence from the location of new firms," Working Papers 2012/9, Institut d'Economia de Barcelona (IEB).
    12. Edward L. Glaeser & William R. Kerr, 2009. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 623-663, September.
    13. Moretti, Enrico, 2011. "Local Labor Markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 14, pages 1237-1313, Elsevier.
    14. Lychagin, Sergey, 2016. "Spillovers, absorptive capacity and agglomeration," Journal of Urban Economics, Elsevier, vol. 96(C), pages 17-35.
    15. Ehrl, Philipp, 2013. "Agglomeration economies with consistent productivity estimates," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 751-763.
    16. Kristian Behrens, 2016. "Agglomeration and clusters: Tools and insights from coagglomeration patterns," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(4), pages 1293-1339, November.
    17. Gilles Duranton & William R. Kerr, 2015. "The Logic of Agglomeration," NBER Working Papers 21452, National Bureau of Economic Research, Inc.
    18. Brad Humphreys & Josh Matti, 2018. "The Spatial Distribution of Urban Consumer Service Firms: Evidence from Yelp Reviews," Working Papers 18-03, Department of Economics, West Virginia University.
    19. Jordy Meekes & Wolter H. J. Hassink, 2023. "Endogenous local labour markets, regional aggregation and agglomeration economies," Regional Studies, Taylor & Francis Journals, vol. 57(1), pages 13-25, January.
    20. MURATA, Yasusada & NAKAJIMA, Ryo & TAMURA, Ryuichi & 田村, 龍一, 2016. "Testing for localization: A new approach," IIR Working Paper 16-11, Institute of Innovation Research, Hitotsubashi University.
    21. Gabriel, Stuart A. & Rosenthal, Stuart S., 2013. "Urbanization, agglomeration economies, and access to mortgage credit," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 42-50.
    22. Gabriel Lang & Eric Marcon & Florence Puech, 2020. "Distance-based measures of spatial concentration: introducing a relative density function," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(2), pages 243-265, April.
    23. Hiroyasu Inoue & Kentaro Nakajima & Yukiko Umeno Saito, 2019. "Localization of collaborations in knowledge creation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(1), pages 119-140, February.

    More about this item

    Keywords

    Agglomeration; Colocalization; Urban area industrial concentration;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juecon:v:91:y:2016:i:c:p:13-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622905 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.