The Logic of Agglomeration

21 Pages Posted: 18 Aug 2015 Last revised: 2 Sep 2015

See all articles by Gilles Duranton

Gilles Duranton

University of Pennsylvania - Real Estate Department

William Kerr

Harvard University - Entrepreneurial Management Unit

Multiple version iconThere are 2 versions of this paper

Date Written: August 2015

Abstract

This review discusses frontier topics in economic geography as they relate to firms and agglomeration economies. We focus on areas where empirical research is scarce but possible. We first outline a conceptual framework for city formation that allows us to contemplate what empiricists might study when using firm-level data to compare the functioning of cities and industries with each other. We then examine a second model of the internal structure of a cluster to examine possibilities with firm-level data for better exposing the internal operations of clusters. An overwhelming theme of our review is the vast scope for enhancements of our picture of agglomeration with the new data that are emerging.

Suggested Citation

Duranton, Gilles and Kerr, William R., The Logic of Agglomeration (August 2015). NBER Working Paper No. w21452. Available at SSRN: https://ssrn.com/abstract=2645528

Gilles Duranton (Contact Author)

University of Pennsylvania - Real Estate Department ( email )

Philadelphia, PA 19104-6330
United States

William R. Kerr

Harvard University - Entrepreneurial Management Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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