Unravelling urban advantages - A meta-analysis of agglomeration economies

A large body of literature considers the productive advantages cities, or “agglomeration economies”. Most empirical studies report positive agglomeration economies, although variation exists in magnitude estimates. We use a meta-analysis to explore this variation, drawing on 6,684 estimates from 295 that cover 54 countries and span six decades. Using rich data robust methods, we unify extend earlier reviews. For our preferred combination study attributes, find elasticities are likely lie range 2.7–6.4%. Our findings confirm controls enabled by detailed give rise smaller also document several trends, with overall rising 1980–2000 then falling. Estimates for manufacturing sectors, contrast, fell entire decades covered data. speculate possible causes these such as urban congestion, technological shocks, freight costs, regulatory settings.