Agglomeration-Effects in Europe
UPF Economics & Business Working Paper No. 499
22 Pages Posted: 9 Nov 2000
Date Written: August 1999
The paper estimates agglomeration-effects for France, Germany, Italy, Spain, and the UK. Estimation takes into account endogeneity of the spatial distribution of employment and spatial fixed-effects. Empirical results suggest that agglomeration-effects in these European countries are only slightly smaller than agglomeration-effects in the US: the estimated elasticity of average-labor-productivity with respect to employment-density is 4.5 percent compared to 5 percent in the US.
Keywords: agglomeration, productivity
JEL Classification: R10
Suggested Citation: Suggested Citation