THE ECONOMICS OF DENSITY: EVIDENCE FROM THE BERLIN WALL

• 成果类型: Article
• 署名作者: Ahlfeldt, Gabriel M.; Redding, Stephen J.; Sturm, Daniel M.; Wolf, Nikolaus
• 署名单位: University of London; London School Economics & Political Science; Centre for Economic Policy Research - UK; Princeton University; Princeton University; National Bureau of Economic Research; University of London; London School Economics & Political Science; Humboldt University of Berlin
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• DOI: 10.3982/ECTA10876
• 发表日期: 2015
• 页码: 2127-2189
• 关键词: Multiple equilibria; cities; PRODUCTIVITY; TRADE; agglomeration; spillovers; externalities; dependence; geography; income

摘要

This paper develops a quantitative model of internal city structure that features agglomeration and dispersion forces and an arbitrary number of heterogeneous city blocks. The model remains tractable and amenable to empirical analysis because of stochastic shocks to commuting decisions, which yield a gravity equation for commuting flows. To structurally estimate agglomeration and dispersion forces, we use data on thousands of city blocks in Berlin for 1936, 1986, and 2006 and exogenous variation from the city's division and reunification. We estimate substantial and highly localized production and residential externalities. We show that the model with the estimated agglomeration parameters can account both qualitatively and quantitatively for the observed changes in city structure. We show how our quantitative framework can be used to undertake counterfactuals for changes in the organization of economic activity within cities in response, for example, to changes in the transport network.