To calculate the economic cost of congestion due to foregone agglomeration economies
, I calculate the effect of a transportation investment program that reduces commuting times in line with the expected average time savings from Metrolinx's proposed investment strategy.
2009: The wealth of cities: Agglomeration economies
and spatial equilibrium in the United States.
We can infer that agglomeration economies
exist in Subic Bay since the number of foreign firms coming from one country increases, thus increasing foreign direct investments.
But agglomeration economies
were too important to ignore, and, overall, the labor climate in Detroit was benign; the city was regarded as a nonunion town, and Michigan was an "open shop" state.
The arguments outlined here imply that if globalisation is associated with falling spatial transactions costs and agglomeration economies
, then globalisation will lead to increasing differences between the fortunes of regions and cities within the same parts of the global economy and even within the same country.
Also, as noted by Pasha and Pasha (1999) there is likely to be a very ambiguous relationship between city size and cost of living, with land values and congestion costs increasing as city size increases, exerting an upward influence on cost of living whereas agglomeration economies
tend to keep costs of living relatively low.
Within nonprofit industries, agglomeration economies
, if they exist, could be smaller.
Keywords: finance, insurance, real estate, Canadian FIRE firms, urban specialization, agglomeration economies
Knowledge Externalities, Agglomeration Economies
, and Employment Growth in Dutch Cities.
Robert Inman's commentary argues that the very local nature of the agglomeration economies
identified by the Rosenthal-Strange analysis suggests that economic development policies can be locally designed and, more significantly, locally funded.
Past studies have shown that location advantages and agglomeration economies
positively affect the location choice of foreign firms.
We also calculated similar estimates for each local authority area (using foreign-owned plant and machinery capital stock across all industries in each area and each year) to proxy for agglomeration economies
associated with the presence of foreign-owned plants.