Duranton, Gilles and Puga, Diego (2001) From sectoral to functional urban specialisation. CEPDP, 511. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753014998
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Abstract
We document and then develop a model explaining and relating changes in firms'' organisation and in urban structure. Sharing of business services by headquarters and of sector-specific intermediates by production plants within a city reduces costs, while congestion increases with city size. A fall in the costs of remote management leads to a shift in urban structure, from a configuration where cities specialise by sector and host integrated headquarters and production plants, to a configuration where cities specialise by function, with headquarters from different sectors and business services clustered in a few large cities and production plants from each sector clustered in smaller separate cities.
| Item Type: | Monograph (Discussion Paper) |
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| Official URL: | http://cep.lse.ac.uk |
| Additional Information: | © 2001 the authors |
| Uncontrolled Keywords: | functional specialisation, cities, business services, headquarters |
| Library of Congress subject classification: | H Social Sciences > HD Industries. Land use. Labor |
| Journal of Economic Literature Classification System: | R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R30 - General R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production |
| Sets: | Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP) Departments > Geography and Environment |
| Rights: | http://www.lse.ac.uk/library/rights/LSERO.htm |
| Identification Number: | 511 |
| URL: | http://eprints.lse.ac.uk/20101/ |
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