TY  - JOUR
AU  - Shea,John
TI  - Comovement in Cities
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5304
PY  - 1995
Y2  - October 1995
UR  - http://www.nber.org/papers/w5304
L1  - http://www.nber.org/papers/w5304.pdf
N1  - Author contact info:
John Shea
Department of Economics
University of Maryland
College Park, MD 20742
Tel: 301/405-3491
Fax: 301/405-3542
E-Mail: shea@econ.umd.edu
AB  - Recent research has shown that industries that locate together in space also move together over the business cycle, and that this correspondence between spatial and temporal comovement is important to aggregate volatility.  This paper asks whether this correspondence is due to local common shocks or to local spillovers.  I examine interindustry comovements within seven large US cities, and find strong evidence for local spillovers.  I estimate that local spillovers explain roughly one-third of manufacturing employment volatility at the city level.  Local spillovers do not appear to result from transport costs and locally traded goods.
ER  -