CORDIS Project
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This project explores why businesses choose to locate in urban areas despite higher costs, focusing on agglomeration effects. It examines job dynamics and knowledge spillovers at the firm level to understand how proximity to other businesses influences productivity and employment.
Why are firms willing to locate in dense areas although production costs are much higher in metropolitan than in rural areas?
As first hypothesized by Marshall (1890), this may be explained by cost or productivity advantages enjoyed by firms when they locate near other firms.
The goal of this project is to provide novel evidence on the existence and sources of such agglomeration effects.In the first part of the project, I use job creations and job destructions at a large scale (like the opening…
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