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

Ahrend, Rudiger and Farchy, Emily and 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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Identification Number: SERCDP0178

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
Subjects: H Social Sciences > HC Economic History and Conditions
Sets: Research centres and groups > Spatial Economics Research Centre
Collections > Economists Online
Date Deposited: 08 Dec 2015 11:32
Last Modified: 08 Dec 2015 11:32
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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