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Firm Fragmentation and Urban Patterns

Author

Listed:
  • Esteban Rossi-Hansberg

    (Stanford University)

  • Pierre-Daniel Sarte

    (Federal Reserve Bank of Richmond)

  • Raymond Owens

    (Federal Reserve Bank of Richmond)

Abstract

We document several empirical regularities regarding the evolution of urban structure in the largest U.S. metropolitan areas over the period 1980-1990. These regularities relate to changes in resident population, employment, occupations, as well as the number and size of establishments in different sections of the metropolitan area. We then propose a theory of urban structure that emphasizes the location and integration decisions of firms. In particular, firms can decide to locate their headquarters and operation plants in different regions of the city. Given that cities experienced positive population growth throughout the 1980s, we show that our theory accounts for the diverse facts documented in the paper.

Suggested Citation

  • Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens, 2005. "Firm Fragmentation and Urban Patterns," Discussion Papers 04-019, Stanford Institute for Economic Policy Research.
    • Handle: RePEc:sip:dpaper:04-019
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    References listed on IDEAS

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    More about this item

    Keywords

    Population Growth; City Structure; Multiple Plants; Firm Integration;
    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)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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