Agglomeration-effects in Europe

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European Economic Review, 46 (2), 213-227, 2002

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The paper estimates agglomeration-effects for France, Germany, Italy, Spain, and the UK. Estimation takes into account endogeneity of the spatial distribution of employment and spatial fixed-effects. Empirical results suggest that agglomeration-effects in these European countries are only slightly smaller than agglomeration- effects in the US: the estimated elasticity of average- labor-productivity with respect to employment-density is 4.5 percent compared to 5 percent in the US.

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Universitat Pompeu Fabra. Departament d'Economia i Empresa

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Economics and Business Working Papers Series; 499

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