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Diversity and specialisation in cities: why, where and when does it matter?

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  • Duranton, Gilles
  • Puga, Diego

Abstract

Why are some cities specialised and others diversified? What are the advantages and disadvantages of urban specialisation and diversity? To what extent does the structure of cities, and the activities of the firms and people in them, change over time? How does the sectoral composition of cities and influence their evolution? To answer these and related questions, we first distil some key stylised facts from the empirical literature on cities and the composition of their activities. We then turn ti a review of different theories looking ot such issues, and study the extent to which these theories contribute ti the understanding of the empirical regularities.

Suggested Citation

  • Duranton, Gilles & Puga, Diego, 1999. "Diversity and specialisation in cities: why, where and when does it matter?," LSE Research Online Documents on Economics 20212, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:20212
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    More about this item

    Keywords

    cities; diversity; specialisation;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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