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Identifying agglomeration shadows: long-run evidence from ancient ports

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  • Hornbeck, Richard
  • Michaels, Guy
  • Rauch, Ferdinand

Abstract

We examine "agglomeration shadows" that emerge around large cities, which discourage some economic activities in nearby areas. Identifying agglomeration shadows is complicated, however, by endogenous city formation and "wave interference" that we show in simulations. We use the locations of ancient ports near the Mediterranean, which seeded modern cities, to estimate agglomeration shadows cast on nearby areas. We find that empirically, as in the simulations, detectable agglomeration shadows emerge for large cities around ancient ports. These patterns extend to modern city locations more generally and illustrate how encouraging growth in particular places can discourage growth of nearby areas.

Suggested Citation

  • Hornbeck, Richard & Michaels, Guy & Rauch, Ferdinand, 2024. "Identifying agglomeration shadows: long-run evidence from ancient ports," LSE Research Online Documents on Economics 126770, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:126770
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    File URL: http://eprints.lse.ac.uk/126770/
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    More about this item

    Keywords

    agglomeration shadow; urban hierarchy; new economic geography;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • N9 - Economic History - - Regional and Urban History

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