Urban Growth and its Aggreate Implications

Gilles Duranton ^[1] ; Diego Puga ^[2]
1. [1] University of Pennsylvania
  
  University of Pennsylvania
  
  City of Philadelphia, Estados Unidos
2. [2] CEMFI
Localización: Documentos de Trabajo ( CEMFI ), Nº. 13 (CEMFI Working Paper No. 2013, June 2020), 2020
Idioma: inglés
Enlaces
- Texto completo (pdf)

Resumen
- We develop an urban growth model where human capital spillovers foster entrepreneurship and learning in heterogenous cities. Incumbent residents limit city expansion through planning regulations so that commuting and housing costs do not outweigh productivity gains. The model builds on strong microfoundations, matches key regularities at the city and economywide levels, and generates novel predictions for which we provide evidence. It can be quantified relying on few parameters, provides a basis to estimate the main ones, and remains transparent regarding its mechanisms. We examine various counterfactuals to assess quantitatively the effect of cities on economic growth and aggregate income.