Publications of the Project: Industry in the City

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Diskussionspapiere 1788 / 2019

Agglomeration Economies and the Firm TFP: Different Effects across Industries

This paper analyzes the effect of agglomeration economies on firms’ total factor productivity. We propose the use of a control function approach to overcome the econometric issue inherent to the two-stage approach commonly used in the literature. Estimations are conducted separately for four industry groups, defined by technological intensity, to allow for non-uniform effects of agglomeration economies ...

2019| Martin Gornig, Alexander Schiersch
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