Handbook of Regional and Urban Economics, vol. 5A, Volume 5A

719 Pages·2015·6.167 MB·English

by  Gilles Duranton, Vernon Henderson, William Strange

Handbook of
REGIONAL AND
URBAN ECONOMICS
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Handbook of
REGIONAL AND
URBAN ECONOMICS
Volume 5A
Edited by
GILLES DURANTON
Wharton School,University of Pennsylvania,
Philadelphia,PA, USA, and CEPR
J. VERNON HENDERSON
Department of Geography, LondonSchool of Economics,
London, UK
WILLIAM C. STRANGE
RotmanSchoolof Management, University of Toronto,
Toronto, ON, Canada
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INTRODUCTION TO THE SERIES
The aim of the Handbooks in Economics series is to produce Handbooks for various
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Kenneth J. Arrow and Michael D. Intriligator
v
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CONTENTS
Foreword xv
Contributors xvii
Volume 5A
Section I. Empirical Methods 1
1. Causal Inference in Urban and RegionalEconomics 3
NathanielBaum-Snow,FernandoFerreira
1.1. Introduction 4
1.2. AFrameworkforEmpiricalInvestigation 6
1.3. SpatialAggregation 20
1.4. SelectiononObservables 23
1.5. IVEstimators 43
1.6. RegressionDiscontinuity 53
1.7. Conclusion 62
References 63
2. Structural Estimation inUrban Economics 69
ThomasJ.Holmes,HolgerSieg
2.1. AnIntroductiontoStructuralEstimation 70
2.2. RevealedPreferenceModelsofResidentialChoice 74
2.3. FiscalCompetitionandPublicGoodProvision 79
2.4. TheAllocationofEconomicActivityAcrossSpace 96
2.5. Conclusions 110
Acknowledgments 111
References 111
3. Spatial Methods 115
SteveGibbons,HenryG.Overman,EleonoraPatacchini
3.1. Introduction 116
3.2. NonrandomnessinSpatialData 120
3.3. SpatialModels 124
3.4. Identification 136
3.5. TreatmentEffectsWhenIndividualOutcomesAre(Spatially)Dependent 152
3.6. Conclusions 157
vii
viii Contents
AppendixA:BiaseswithOmittedSpatialVariables 158
AppendixB:HypotheticalRCTExperimentsforIdentifyingParametersinthe
PresenceofInteractionsWithinSpatialClusters 161
References 164
Section II. Agglomeration and Urban Spatial Structure 169
4. Agglomeration Theory with Heterogeneous Agents 171
KristianBehrens,FrédéricRobert-Nicoud
4.1. Introduction 172
4.2. FourCausesandTwoMoments:AGlimpseattheData 175
4.3. Agglomeration 187
4.4. SortingandSelection 211
4.5. Inequality 234
4.6. Conclusions 239
Acknowledgments 240
References 241
5. The Empirics of Agglomeration Economies 247
Pierre-PhilippeCombes,LaurentGobillon
5.1. Introduction 248
5.2. MechanismsandCorrespondingSpecifications 252
5.3. LocalDeterminantsofAgglomerationEffects 270
5.4. EstimationStrategy 282
5.5. MagnitudesfortheEffectsofLocalDeterminantsofProductivity 298
5.6. EffectsofAgglomerationEconomiesonOutcomesOtherThanProductivity 314
5.7. IdentificationofAgglomerationMechanisms 328
5.8. Conclusion 338
Acknowledgments 340
References 341
6. Agglomeration and Innovation 349
GeraldCarlino,WilliamR.Kerr
6.1. Introduction 350
6.2. WhatisInnovation? 352
6.3. PatternsofAgglomerationandInnovation 358
6.4. FormalTheoriesLinkingAgglomerationandInnovation 366
6.5. AdditionalIssuesonInnovationandAgglomeration 390
6.6. Conclusions 396
Acknowledgments 397
References 398
Contents ix
7. Cities andthe Environment 405
MatthewE.Kahn,RandallWalsh
7.1. Introduction 406
7.2. IncorporatingLocalandGlobalEnvironmentalExternalitiesinto
LocationalEquilibriumModels 409
7.3. GlobalExternalitiesExacerbatedbytheIntrametroAreaLocational
ChoiceofHouseholdsandFirms 423
7.4. EnvironmentalAmenitiesinaSystemofCities 427
7.5. TheUrbanBuildingStock'sEnergyConsumption 445
7.6. Conclusion 457
Acknowledgment 458
References 458
8. Urban Land Use 467
GillesDuranton,DiegoPuga
8.1. Introduction 468
8.2. ModelingUrbanLandUse:TheMonocentricModel 472
8.3. ExtendingtheMonocentricModel 483
8.4. AgglomerationandCommercialLandUse:Modeling
PolycentricCities 503
8.5. LandUseRegulation 515
8.6. EmpiricalPriceandDevelopmentGradients 522
8.7. PatternsofResidentialSortingWithinCities 530
8.8. PatternsofResidentialLandDevelopment 537
8.9. EmploymentDecentralizationandPatternsofBusinessLocation
ChangesWithinCities 544
8.10. Conclusion 551
Acknowledgments 553
References 553
9. Neighborhood andNetworkEffects 561
GiorgioTopa,YvesZenou
9.1. Introduction 562
9.2. NeighborhoodEffects 566
9.3. NetworkEffects 578
9.4. NeighborhoodandNetworkEffects 599
9.5. ConcludingRemarks 615
Acknowledgments 617
References 617