Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2021-09-23
Number: 21-084/VIII
Author-Name: Stuart Donovan
Author-Workplace-Name: Vrije Universiteit Amsterdam
Author-Name: Thomas de Graaff
Author-Workplace-Name: Vrije Universiteit Amsterdam
Author-Name: Arthur Grimes
Author-Workplace-Name: Motu Economic and Public Policy Research
Author-Name: Henri L.F. de Groot
Author-Workplace-Name: Vrije Universiteit Amsterdam
Author-Name: David C. Maré
Author-Workplace-Name: Motu Economic and Public Policy Research
Title: Cities with Forking Paths? Agglomeration Economies in New Zealand 1976-2018
Abstract: We consider whether external urban economic advantages (agglomeration economies)
vary with time and space using a simple economic model and detailed micro-data
on 134 locations in New Zealand for the period 1976–2018. We find subtle temporal
variation, with estimates peaking in 1991 and then falling over the next 15-years by
approximately 1%. Since 2006, however, estimates have remained broadly stable.
Our results reveal more significant spatial variation: Large cities offer net benefits
in production, but not in consumption, whereas small locations close to large cities
(“satellites”) experience agglomeration economies that are stronger than average.
Classification-JEL: R11, R23, R30
Keywords: agglomeration economies, cities, productivity, consumption, New Zealand
File-URL: https://papers.tinbergen.nl/21084.pdf
File-Format: application/pdf
File-Size: 6.691.705 bytes
Handle: RePEc:tin:wpaper:20210084