Urban production externalities*
نویسنده
چکیده
Urban production externalities (agglomeration effects) are external effects among producers in areas with a high density of economic activity. Such external effects are the main explanation for why productivity is usually highest in those areas of a country where economic activity is densest. There is some disagreement about the strength of urban production externalities. What is clear however is that even weak urban production externalities can explain large spatial differences in productivity. * Prepared for New Palgrave: A Dictionary of Economics Author’s address: Department of Economics and Business UPF Ramon Trias Fargas 25-27 08005 Barcelona, Spain [email protected] http://www.crei.cat/people/ciccone/welcome.html
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