What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns

Why do firms cluster near one another? We test Marshall's theories of industrial agglomeration by examining which industries locate near one another, or coagglomerate. We construct pairwise coagglomeration indices for US manufacturing industries from the Economic Census. We then relate coagglom...

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Bibliographic Details
Main Authors: Ellison, Glenn (Contributor), Glaeser, Edward L. (Contributor), Kerr, William R. (Contributor)
Other Authors: Massachusetts Institute of Technology. Department of Economics (Contributor)
Format: Article
Language:English
Published: American Economic Association, 2013-12-05T19:30:57Z.
Subjects:
Online Access:Get fulltext
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100 1 0 |a Ellison, Glenn  |e author 
100 1 0 |a Massachusetts Institute of Technology. Department of Economics  |e contributor 
100 1 0 |a Ellison, Glenn  |e contributor 
100 1 0 |a Glaeser, Edward L.  |e contributor 
100 1 0 |a Kerr, William R.  |e contributor 
700 1 0 |a Glaeser, Edward L.  |e author 
700 1 0 |a Kerr, William R.  |e author 
245 0 0 |a What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns 
260 |b American Economic Association,   |c 2013-12-05T19:30:57Z. 
856 |z Get fulltext  |u http://hdl.handle.net/1721.1/82638 
520 |a Why do firms cluster near one another? We test Marshall's theories of industrial agglomeration by examining which industries locate near one another, or coagglomerate. We construct pairwise coagglomeration indices for US manufacturing industries from the Economic Census. We then relate coagglomeration levels to the degree to which industry pairs share goods, labor, or ideas. To reduce reverse causality, where collocation drives input-output linkages or hiring patterns, we use data from UK industries and from US areas where the two industries are not collocated. All three of Marshall's theories of agglomeration are supported, with input-output linkages particularly important. 
520 |a National Science Foundation (U.S.) 
520 |a National Science Foundation (U.S.) (grant ITR-0427889) 
520 |a National Science Foundation (U.S.) (grant SES-0550897) 
546 |a en_US 
655 7 |a Article 
773 |t American Economic Review