FIRM DYNAMICS IN AN URBAN ECONOMY *

• 成果类型: Article
• 署名作者: Brinkman, Jeffrey; Coen-Pirani, Daniele; Sieg, Holger
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Philadelphia; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Pennsylvania
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12133
• 发表日期: 2015
• 页码: 1135-1164
• 关键词: geographic concentration; land-use; equilibrium; agglomeration; PRODUCTIVITY; cities; entry

摘要

We develop a new dynamic general equilibrium model to explain firm entry, exit, and relocation decisions in an urban economy with multiple locations and agglomeration externalities. We characterize the stationary distribution of firms that arises in equilibrium. We estimate the parameters of the model using a method of moments estimator. Using unique panel data collected by Dun and Bradstreet, we find that agglomeration externalities increase the productivity of firms by up to 8%. Economic policies that subsidize firm relocations to the central business district increase agglomeration externalities in that area. They also increase economic welfare in the economy.