TY - JOUR
T1 - Agglomeration and Land Rents
T2 - Evidence from the Prefectures
AU - Dekle, Robert
AU - Eaton, Jonathan
N1 - Funding Information:
*We thank Aditya Bhattacharjea, Rabindra Bhandari, and Akiko Tamura for excellent research assistance and seminar participants at the Board of Governors of the Federal Reserve System, Tufts University, Tel Aviv University, New York University, Harvard University, Indiana University, and at the conference, ``Asset and Land Prices: Conceptual Issues and the Japanese Experience,'' Boston University, two anonymous referees, and the editor of this journal for comments. We gratefully acknowledge the support of the Japan—U.S. Friendship Commission and the National Science Foundation. ²To whom correspondence should be addressed. 1See, for example, Arrow w3x, Romer w39x, and Lucas w24x.
PY - 1999/9
Y1 - 1999/9
N2 - We use Japanese prefectural wage and land rent data to estimate the magnitude of agglomeration effects in manufacturing and financial services. We also examine the geographical range of agglomeration effects by estimating the extent to which they diminish with distance, using a specification that encompasses the polar cases of purely local agglomeration economies, on the one hand, and national increasing returns, on the other. We find that the extent of agglomeration economies in both industries is significant, but that their effect decays much faster with distance in financial services than in manufacturing. That is, the geographical reach of spillovers in financial services appears to be much lower than in manufacturing.
AB - We use Japanese prefectural wage and land rent data to estimate the magnitude of agglomeration effects in manufacturing and financial services. We also examine the geographical range of agglomeration effects by estimating the extent to which they diminish with distance, using a specification that encompasses the polar cases of purely local agglomeration economies, on the one hand, and national increasing returns, on the other. We find that the extent of agglomeration economies in both industries is significant, but that their effect decays much faster with distance in financial services than in manufacturing. That is, the geographical reach of spillovers in financial services appears to be much lower than in manufacturing.
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U2 - 10.1006/juec.1998.2118
DO - 10.1006/juec.1998.2118
M3 - Article
AN - SCOPUS:0000596426
VL - 46
SP - 200
EP - 214
JO - Journal of Urban Economics
JF - Journal of Urban Economics
SN - 0094-1190
IS - 2
ER -