Munich Personal RePEc Archive

Growth in a Cross-Section of Cities: Location, Increasing Returns or Random Growth?

González-Val, Rafael and Olmo, Jose (2014): Growth in a Cross-Section of Cities: Location, Increasing Returns or Random Growth?

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_56732.pdf

Download (185kB) | Preview

Abstract

This article analyses empirically the main existing theories on income and population city growth: increasing returns to scale, locational fundamentals and random growth. To do this we consider a large database of urban, climatological and macroeconomic data from 1,173 US cities observed in 1990 and 2000. The econometric model is robust to the presence of spatial effects. Our analysis shows the existence of increasing returns and two distinct equilibria in per-capita income and population growth. We also find important differences in the structure of productive activity, unemployment rates and geographical location between cities in low income and high income regimes.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.