A companion to urban economics by Richard J. Arnott, Daniel P. McMillen

By Richard J. Arnott, Daniel P. McMillen

A better half to city Economics presents a cutting-edge assessment of this box, speaking its highbrow richness via a various portfolio of authors and themes. targeted in either its rigor and overseas therapy an amazing supplementary textbook in upper-level undergraduate city economics classes, or in master's point classes, delivering scholars with the mandatory origin to take on extra complex subject matters in city economics includes contributions from the world’s best city economists

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Kallal, H. , Scheinkman, J. , and Shleifer, A. 1992: Growth in cities. Journal of Political Economy, 100, 1,126–52. Henderson, J. V. 1986: Efficiency of resource usage and city size. Journal of Urban Economics, 19, 47–70. —— 2003: Marshall’s scale economies. Journal of Urban Economics, 53, 1–28. , and Turner, M. 1995: Industrial development in cities. Journal of Political Economy, 103, 1,067–85. Holmes, T. J. 1999: Localization of industry and vertical disintegration. Review of Economics and Statistics, 81(2), 314–25.

The results of this estimation are partly consistent with Saxenian. Adding an additional employee at a small firm typically has a positive effect on births and new firm employment. Adding the employee at a large firm typically does not. To the extent that small firms are more open, this result is consistent with Saxenian. The performance of the subsidiary/nonsubsidiary variable is unexpected. In this case, an extra worker at a subsidiary establishment has a larger effect on the attraction of new own-industry arrivals.

This kind of knowledge ACTC01 17 18/04/2006, 12:20PM S. S. ROSENTHAL 18 AND W. C. STRANGE spillover depends crucially on physical proximity, as Tom Furlong of Digital Electronics Corporation notes: Physical proximity is important to just about everything we do. I have better relationships with Silicon Valley companies than I have even with my own company . . because I can just get in the car and go see them . . You never work on the same level if you do it by telephone and airplane. It’s very hard to work together long distance.

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