Hornbeck, Richard ; Michaels, Guy ; Rauch, Ferdinand
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Abstract
We examine "agglomeration shadows" that emerge around large cities, which discourage some economic activities in nearby areas. Identifying agglomeration shadows is complicated, however, by endogenous city formation and "wave interference" that we show in simulations. We use the locations of ancient ports near the Mediterranean, which seeded modern cities, to estimate agglomeration shadows cast on nearby areas. We find that empirically, as in the simulations, detectable agglomeration shadows emerge for large cities around ancient ports. These patterns extend to modern city locations more generally, and illustrate how encouraging growth in particular places can discourage growth of nearby areas.
| Document type: | Working paper |
|---|---|
| Series Name: | AWI Discussion Paper Series |
| Volume: | 0752 |
| Publisher: | Universität |
| Place of Publication: | Heidelberg |
| Date Deposited: | 01 Aug 2024 13:11 |
| Date: | June 2024 |
| Number of Pages: | 68 |
| Faculties / Institutes: | The Faculty of Economics and Social Studies > Alfred-Weber-Institut for Economics |
| DDC-classification: | 330 Economics |
| Uncontrolled Keywords: | agglomeration shadow, urban hierarchy, new economic geography |
| Series: | Discussion Paper Series / University of Heidelberg, Department of Economics |
