@inbook{cc5b19a0dcf74791b8d9ae9ee66794c4,
title = "Chapter 49 Evidence on the nature and sources of agglomeration economies",
abstract = "This paper considers the empirical literature on the nature and sources of urban increasing returns, also known as agglomeration economies. An important aspect of these externalities that has not been previously emphasized is that the effects of agglomeration extend over at least three different dimensions. These are the industrial, geographic, and temporal scope of economic agglomeration economies. In each case, the literature suggests that agglomeration economies attenuate with distance. Recently, the literature has also begun to provide evidence on the microfoundations of external economies of scale. The best known of these sources are those attributed to Marshall (1920): labor market pooling, input sharing, and knowledge spillovers. Evidence to date supports the presence of all three of these forces. In addition, there is also evidence that natural advantage, home market effects, consumption opportunities, and rent-seeking all contribute to agglomeration.",
keywords = "C1, D2, O4, R0, agglomeration economies, external economies, microfoundations, productivity, urban growth",
author = "Rosenthal, {Stuart S.} and Strange, {William C.}",
note = "Funding Information: We are grateful to Gilles Duranton, Vernon Henderson, Jacques Thisse and the participants of a presentation at the North American Regional Science Association Meetings in November, 2002. Any errors are ours alone. We are also grateful for the financial support of the National Institute of Aging, the Connaught Fund at the University of Toronto, and the Social Sciences and Humanities Research Council of Canada. Copyright: Copyright 2018 Elsevier B.V., All rights reserved.",
year = "2004",
doi = "10.1016/S1574-0080(04)80006-3",
language = "English (US)",
isbn = "9780444509673",
series = "Handbook of Regional and Urban Economics",
publisher = "Elsevier",
pages = "2119--2171",
booktitle = "Cities and Geography",
address = "Netherlands",
}