Productive Cities: Sorting, Selection, and Agglomeration

Large cities produce more output per capita than small cities. This higher productivity may occur because more talented individuals sort into large cities, because large cities select more productive entrepreneurs and firms, or because of agglomeration economies. We develop a model of systems of cit...

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Bibliographic Details
Published in:The Journal of political economy 2014-06, Vol.122 (3), p.507-553
Main Authors: Behrens, Kristian, Duranton, Gilles, Robert-Nicoud, Frédéric
Format: Article
Language:English
Subjects:
Agglomeration
Cities
Economic conditions
Economic costs
Economic modeling
Economic models
Economic theory
Economies of agglomeration
Empirical research
Enterprises
Entrepreneurs
Human capital
Noncitizens
Per capita output
Political economy
Productivity
Serendipity
Studies
Urban agglomeration
Urban economics
Urban populations
Zipf's Law
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Summary:Large cities produce more output per capita than small cities. This higher productivity may occur because more talented individuals sort into large cities, because large cities select more productive entrepreneurs and firms, or because of agglomeration economies. We develop a model of systems of cities that combines all three elements and suggests interesting complementarities between them. The model can replicate stylized facts about sorting, agglomeration, and selection in cities. It also generates Zipf’s law for cities under empirically plausible parameter values. Finally, it provides a useful framework within which to reinterpret extant empirical evidence.
ISSN:0022-3808
1537-534X
DOI:10.1086/675534