Cities with Forking Paths? Agglomeration Economies in New Zealand 1976-2018

We consider whether external urban economic advantages (agglomeration economies) vary with time and space using a simple model detailed micro-data on 134 locations in New Zealand for the period 1976–2018. find subtle temporal variation, estimates peaking 1991 then falling over next 15-years by approximately 1%. Since 2006, however, have remained broadly stable. Our results reveal more significant spatial variation: Large cities offer net benefits production, but not consumption, whereas small close to large (“satellites”) experience agglomeration economies that are stronger than average.