What makes cities more productive? Agglomeration economies and the role of urban governance: evidence from 5 OECD countries

Ahrend, Rudiger, Farchy, Emily, Kaplanis, Ioannis and Lembcke, Alexander C. (2015) What makes cities more productive? Agglomeration economies and the role of urban governance: evidence from 5 OECD countries. SERC discussion papers (SERCDP0178). Spatial Economics Research Centre, London, UK.

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Abstract

This paper estimates agglomeration benefits across five OECD countries, and represents the first empirical analysis that combines evidence on agglomeration benefits and the productivity impact of metropolitan governance structures, while taking into account the potential sorting of individuals across cities. The comparability of results in a multi-country setting is supported through the use of a new internationally-harmonised definition of cities based on economic linkages rather than administrative boundaries. In line with the literature, the analysis confirms that city productivity increases with city size but finds that cities with fragmented governance structures tend to have lower levels of productivity. This effect is mitigated by the existence of a metropolitan governance body.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://www.spatialeconomics.ac.uk/
Additional Information:	© 2015 The Authors
Divisions:	Spatial Economics Research Centre
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R23 - Regional Migration; Regional Labor Markets; Population R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R50 - General
Date Deposited:	08 Dec 2015 11:32
Last Modified:	13 Sep 2024 20:32
Funders:	Economic and Social Research Council, Department for Business, Innovation & Skills, Welsh Government
URI:	http://eprints.lse.ac.uk/id/eprint/64619

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