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Employment density and agglomeration economies in tall buildings

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  • Liu, Crocker H.
  • Rosenthal, Stuart S.
  • Strange, William C.

Abstract

This paper examines vertical patterns of employment density and agglomeration economies within tall buildings. Theory suggests that vertical density should depend on the interplay of street access, height-related amenities, and productivity. Based on suite level data, we show that density patterns are u-shaped, with high density at ground level and high floors. Furthermore, factors associated with productivity, including nearby employment and firm-specific characteristics, have positive effects on employment density. Vertical density patterns are consistent with productivity spillovers that are strongest on a company’s floor and attenuate rapidly with vertical distance. Similar evidence is obtained based on sales for law firms.

Suggested Citation

  • Liu, Crocker H. & Rosenthal, Stuart S. & Strange, William C., 2020. "Employment density and agglomeration economies in tall buildings," Regional Science and Urban Economics, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:regeco:v:84:y:2020:i:c:s0166046219302091
    DOI: 10.1016/j.regsciurbeco.2020.103555
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. COVID-19 and the Market for Skyscrapers
      by Jason Barr in Skynomics Blog on 2020-11-19 13:09:50

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    Cited by:

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    More about this item

    Keywords

    Agglomeration; Density; Commercial real estate;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets

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