Growth in Cities

38 Pages Posted: 3 Feb 2001 Last revised: 26 Apr 2015

See all articles by Edward L. Glaeser

Edward L. Glaeser

Harvard University - Department of Economics; Brookings Institution; National Bureau of Economic Research (NBER)

Hedi Kallal

Salomon Smith Barney, Inc.

José Scheinkman

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

Andrei Shleifer

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

Multiple version iconThere are 2 versions of this paper

Date Written: July 1991

Abstract

Recent theories of economic growth, including Romer (1986), Porter (1989) and Jacobs (1969), have stressed the role of technological spillovers in generating growth. Because such knowledge spillovers are particularly effective in cities, where communication between people is more extensive, data on the growth of industries in different cities allows us to test some of these theories. Using a new data set on the growth of large industries in 170 U.S. cities between 1956 and 1987, we find that local competition and urban variety, but not regional specialization, encourage employment growth in industries. The evidence suggests that important knowledge spillovers might be between, rather than within industries, consistent with the theories of Jacobs (1969).

Suggested Citation

Glaeser, Edward L. and Kallal, Hedi and Scheinkman, José and Shleifer, Andrei, Growth in Cities (July 1991). NBER Working Paper No. w3787. Available at SSRN: https://ssrn.com/abstract=258503

Edward L. Glaeser (Contact Author)

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Hedi Kallal

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