NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Productivity and the Density of Economic Activity

Antonio Ciccone, Robert E. Hall

NBER Working Paper No. 4313 (Also Reprint No. r2052)
Issued in April 1993
NBER Program(s):   EFG

Two different models - one based on local geographical externalities and the other on the variety of only locally available intermediate services - are shown to give rise to a simple, estimable relation between employment density and productivity. Using data on gross state output for the U.S., we find that agglomeration more than offsets congestion effects in denser areas. While our estimate of the elasticity of productivity with respect to density is small, it explains more than 50% of the observed state productivity differences, given the large differences in density.

download in pdf format
   (259 K)

download in djvu format
   (182 K)

email paper

This paper is available as PDF (259 K) or DjVu (182 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w4313

Published: American Economic Review, vol. 86, no. 1, pp. 54-70, (March 1996).

Users who downloaded this paper also downloaded these:
Glaeser, Kallal, Scheinkman, and Shleifer w3787 Growth in Cities
Krugman w3275 Increasing Returns and Economic Geography
Rauch w3905 Productivity Gains From Geographic Concentration of human Capital: Evidence From the Cities
Griliches Issues in Assessing the Contribution of Research and Development to Productivity Growth
Glaeser and Mare w4728 Cities and Skills
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us