Growth in a Cross-Section of Cities : Location, Increasing Returns or Random Growth?
González Val, Rafael (Universitat de Barcelona)
Olmo, Jose (City University London)
Xarxa de Referència en Economia Aplicada (XREAP)

Imprint: Xarxa de Referència en Economia Aplicada (XREAP) 2011
Description: 47 p.
Abstract: This article analyzes empirically the main existing theories on income and population city growth: increasing returns to scale, locational fundamentals and random growth. To do this we implement a threshold nonlinearity test that extends standard linear growth regression models to a dataset on urban, climatological and macroeconomic variables on 1,175 U. S. cities. Our analysis reveals the existence of increasing returns when per-capita income levels are beyond $1 9; 264. Despite this, income growth is mostly explained by social and locational fundamentals. Population growth also exhibits two distinct equilibria determined by a threshold value of 116,300 inhabitants beyond which city population grows at a higher rate. Income and population growth do not go hand in hand, implying an optimal level of population beyond which income growth stagnates or deteriorates.
Rights: Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, la comunicació pública de l'obra i la creació d'obres derivades, fins i tot amb finalitats comercials, sempre i quan es reconegui l'autoria de l'obra original. Creative Commons
Language: Anglès.
Series: Documents de treball de la Xarxa de Referència en Economia Aplicada (XREAP)
Series: XREAP ; 2011-21
Document: workingPaper
Subject: Threshold nonlinearity test ; Locational fundamentals ; Multiple equilibria ; Random growth ; Economy ; Economic development ; Cities and towns ; Economia ; Desenvolupament econòmic ; Ciutats

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47 p, 304.5 KB

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Research literature > Studies

 Record created 2012-08-31, last modified 2017-10-21

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