Firm Fragmentation and Urban Patterns

47 Pages Posted: 6 Dec 2012

See all articles by Esteban Rossi-Hansberg

Esteban Rossi-Hansberg

Princeton University - Department of Economics; National Bureau of Economic Research (NBER)

Pierre-Daniel G. Sarte

Federal Reserve Bank of Richmond

Raymond E. Owens

Federal Reserve Bank of Richmond

Multiple version iconThere are 3 versions of this paper

Date Written: June 5, 2005

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.

Keywords: population growth, city structure, multiple plants, firm integration

JEL Classification: R12, R14

Suggested Citation

Rossi-Hansberg, Esteban Alejandro and Sarte, Pierre-Daniel and Owens, Raymond E., Firm Fragmentation and Urban Patterns (June 5, 2005). FRB Richmond Working Paper No. 05-03. Available at SSRN: https://ssrn.com/abstract=2185592 or http://dx.doi.org/10.2139/ssrn.2185592

Esteban Alejandro Rossi-Hansberg (Contact Author)

Princeton University - Department of Economics ( email )

Princeton, NJ
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Pierre-Daniel Sarte

Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

Raymond E. Owens

Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

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