What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns
Why do firms cluster near one another? We test Marshall's theories of industrial agglomeration by examining which industries locate near one another, or coagglomerate. We construct pairwise coagglomeration indices for US manufacturing industries from the Economic Census. We then relate coagglom...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
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American Economic Association
2013
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| Online Access: | http://hdl.handle.net/1721.1/82638 https://orcid.org/0000-0003-3164-0855 |
| _version_ | 1826216888232837120 |
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| author | Ellison, Glenn Glaeser, Edward L. Kerr, William R. |
| author2 | Massachusetts Institute of Technology. Department of Economics |
| author_facet | Massachusetts Institute of Technology. Department of Economics Ellison, Glenn Glaeser, Edward L. Kerr, William R. |
| author_sort | Ellison, Glenn |
| collection | MIT |
| description | Why do firms cluster near one another? We test Marshall's theories of industrial agglomeration by examining which industries locate near one another, or coagglomerate. We construct pairwise coagglomeration indices for US manufacturing industries from the Economic Census. We then relate coagglomeration levels to the degree to which industry pairs share goods, labor, or ideas. To reduce reverse causality, where collocation drives input-output linkages or hiring patterns, we use data from UK industries and from US areas where the two industries are not collocated. All three of Marshall's theories of agglomeration are supported, with input-output linkages particularly important. |
| first_indexed | 2024-09-23T16:55:03Z |
| format | Article |
| id | mit-1721.1/82638 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T16:55:03Z |
| publishDate | 2013 |
| publisher | American Economic Association |
| record_format | dspace |
| spelling | mit-1721.1/826382022-10-03T09:06:54Z What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns Ellison, Glenn Glaeser, Edward L. Kerr, William R. Massachusetts Institute of Technology. Department of Economics Ellison, Glenn Glaeser, Edward L. Kerr, William R. Why do firms cluster near one another? We test Marshall's theories of industrial agglomeration by examining which industries locate near one another, or coagglomerate. We construct pairwise coagglomeration indices for US manufacturing industries from the Economic Census. We then relate coagglomeration levels to the degree to which industry pairs share goods, labor, or ideas. To reduce reverse causality, where collocation drives input-output linkages or hiring patterns, we use data from UK industries and from US areas where the two industries are not collocated. All three of Marshall's theories of agglomeration are supported, with input-output linkages particularly important. National Science Foundation (U.S.) National Science Foundation (U.S.) (grant ITR-0427889) National Science Foundation (U.S.) (grant SES-0550897) 2013-12-05T19:30:57Z 2013-12-05T19:30:57Z 2010-06 Article http://purl.org/eprint/type/JournalArticle 0002-8282 http://hdl.handle.net/1721.1/82638 Ellison, Glenn, Edward L Glaeser, and William R Kerr. “What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns.” American Economic Review 100, no. 3 (June 2010): 1195-1213. https://orcid.org/0000-0003-3164-0855 en_US http://dx.doi.org/10.1257/aer.100.3.1195 American Economic Review Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association American Economic Association |
| spellingShingle | Ellison, Glenn Glaeser, Edward L. Kerr, William R. What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns |
| title | What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns |
| title_full | What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns |
| title_fullStr | What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns |
| title_full_unstemmed | What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns |
| title_short | What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns |
| title_sort | what causes industry agglomeration evidence from coagglomeration patterns |
| url | http://hdl.handle.net/1721.1/82638 https://orcid.org/0000-0003-3164-0855 |
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