González-Val, Rafael (2009): What makes cities bigger and richer? Evidence from 1990-2000 in the US.
Download (804kB) | Preview
This paper analyses the determinants of growth of American cities, understood as growth of the population or per capita income, from 1990 to 2000. This empirical analysis uses data from all cities with no size restriction (our sample contains data for 21,655 cities). The results show that while population growth in cities appears to be independent of initial size, the growth of city per capita income is negatively correlated to initial per capita income: the richest cities grew less in this period. To try to explain these differentiated behaviors, we examine the relationship between urban characteristics in 1990 and city growth (both in population and in per capita income) using a Multinomial Logit Model. The geographical situation of cities seems to play a key role in their growth.
|Item Type:||MPRA Paper|
|Original Title:||What makes cities bigger and richer? Evidence from 1990-2000 in the US|
|Keywords:||City growth; Multinomial logit|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R0 - General > R00 - General
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
|Depositing User:||Rafael González-Val|
|Date Deposited:||12. Jun 2009 02:56|
|Last Modified:||12. Feb 2013 21:41|
Beeson, P.E., D. N. DeJong, and W. Troesken, (2001). Population Growth in US Counties, 1840-1990. Regional Science and Urban Economics, 31: 669-699.
Black, D., and V. Henderson, (1998). Urban evolution in the USA. Brown University Working Paper No. 98-21.
Duranton, G., (2000). Urbanization, urban structure, and growth, in: J.-M. Huriot and J. F. Thisse (Eds) Economics of Cities: Theoretical Perspectives, 290–317. Cambridge: Cambridge University Press.
Duranton, G., and D. Puga, (2004). Micro-foundations of urban agglomeration economies. Handbook of urban and regional economics, Vol. 4, J. V. Henderson and J. F. Thisse, eds. Amsterdam: Elsevier Science, North-Holland, Chapter 48, 2064-2117.
Eeckhout, J., (2004). Gibrat's Law for (All) Cities. American Economic Review, American Economic Association, vol. 94(5), pages 1429-1451.
Fujita, M. and J.-F. Thisse, (2002). Economics of Agglomeration. Cambridge: Cambridge University Press.
Garicano, L., and E. Rossi-Hansberg, (2006). Organization and inequality in a knowledge economy. The Quarterly Journal of Economics, MIT Press, vol. 121(4): 1383-1435.
Gibrat, R., (1931). Les inégalités économiques, París: Librairie du Recueil Sirey.
Glaeser, E. L., H. D. Kallal, J. A. Scheinkman, and A. Shleifer, (1992). Growth in Cities. The Journal of Political Economy, Vol. 100(6), Centennial Issue, 1126-1152.
Glaeser, E. L., and A. Saiz, (2003). The Rise of the Skilled City. Harvard Institute of Economic Research, Discussion Paper number 2025.
Glaeser, E. L., J. A. Scheinkman, and A. Shleifer, (1995). Economic growth in a cross-section of cities. Journal of Monetary Economics, 36: 117-143.
Glaeser, E. L. and J. Shapiro, (2003). Urban Growth in the 1990s: Is city living back? Journal of Regional Science, Vol. 43(1): 139-165.
Hausman, J., and D. McFadden, (1984). Specification tests for the multinomial logit model. Econometrica 52, 1219-1240.
Henderson, V., A. Kuncoro and M. Turner (1995). Industrial development in cities. Journal of Political Economy 103 (5), 1067-1090.
Jacobs, J., (1969). Economy of Cities. Vintage, New York.
Long, J. S., and J. Freese, (2006). Regression Models for Categorical Dependent Variables Using Stata. Stata Press Publication, 2nd ed.
Loury, G. C., (1979). Market Structure and Innovation. The Quarterly Journal of Economics, MIT Press, vol. 93(3): 395-410.
Mitchener, K. J., and I. W. McLean, (2003). The Productivity of US States since 1880. Journal of Economic Growth, 8: 73-114.
Polèse, M., (2005). Cities and national economic growth: A reappraisal. Urban Studies, 42(8): 1429-1451.
Quigley, J. M., (1998). Urban diversity and economic growth. Journal of Economic Perspectives, 12(2): 127–138.
Simon, C. J., and C. Nardinelli, (2002). Human capital and the rise of American cities, 1900-1990. Regional Science and Urban Economics, 32: 59-96.
Small, K. A., and C. Hsiao, (1985). Multinomial logit specification tests. International Economic Review 26, 619-627.
Yamamoto, D., (2008). Scales of regional income disparities in the USA, 1955–2003. Journal of Economic Geography, Vol. 8(1): 79-103.
Young, A. T., M. J. Higgins, and D. Levy, (2008). Sigma Convergence versus Beta Convergence: Evidence from U.S. County-Level Data. Journal of Money, Credit and Banking, Vol. 40(5): 1083-1093.
Available Versions of this Item
- What makes cities bigger and richer? Evidence from 1990-2000 in the US. (deposited 12. Jun 2009 02:56) [Currently Displayed]