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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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    13. Richard F. Muth, 1961. "The Spatial Structure Of The Housing Market," Papers in Regional Science, Wiley Blackwell, vol. 7(1), pages 207-220, January.
    14. Liu, Crocker H. & Rosenthal, Stuart S. & Strange, William C., 2018. "The vertical city: Rent gradients, spatial structure, and agglomeration economies," Journal of Urban Economics, Elsevier, vol. 106(C), pages 101-122.
    15. Stuart S. Rosenthal & William C. Strange, 2012. "Female Entrepreneurship, Agglomeration, and a New Spatial Mismatch," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 764-788, August.
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    18. Helsley, Robert W. & Strange, William C., 2008. "A game-theoretic analysis of skyscrapers," Journal of Urban Economics, Elsevier, vol. 64(1), pages 49-64, July.
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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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    5. Ahlfeldt, Gabriel M. & Barr, Jason, 2022. "The economics of skyscrapers: A synthesis," Journal of Urban Economics, Elsevier, vol. 129(C).
    6. Rosenthal, Stuart S. & Strange, William C. & Urrego, Joaquin A., 2022. "JUE insight: Are city centers losing their appeal? Commercial real estate, urban spatial structure, and COVID-19," Journal of Urban Economics, Elsevier, vol. 127(C).
    7. Huang, Naqun & Pang, Jindong & Yang, Yanmin, 2023. "JUE Insight: COVID-19 and household preference for urban density in China," Journal of Urban Economics, Elsevier, vol. 133(C).
    8. Liu, Crocker H. & Rosenthal, Stuart S. & Strange, William C., 2024. "Agglomeration Economies and the Built Environment: Evidence from Specialized Buildings and Anchor Tenants," Journal of Urban Economics, Elsevier, vol. 142(C).
    9. Ahlfeldt, Gabriel M. & Barr, Jason, 2022. "Viewing urban spatial history from tall buildings," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    10. Menzel, Andreas, 2021. "Knowledge exchange and productivity spill-overs in Bangladeshi garment factories," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 721-746.
    11. Jan Ženka & Luděk Krtička & Lenka Paszová & Tereza Pundová & Kateřina Rudincová & Simona Šťastná & Veronika Svetlíková & Jan Matula, 2021. "Micro-Geographies of Information and Communication Technology Firms in a Shrinking Medium-Sized Industrial City of Ostrava (Czechia)," Land, MDPI, vol. 10(7), pages 1-26, July.
    12. Jedwab, Remi & Barr, Jason & Brueckner, Jan K., 2022. "Cities Without Skylines: Worldwide Building-Height Gaps and their Possible Determinants and Implications," Journal of Urban Economics, Elsevier, vol. 132(C).

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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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