Scale economies and industry agglomeration externalities: a dynamic cost function approach
Article Abstract:
The effects of scale economies and agglomeration externalities which are supposed to be important factors of economic growth are assessed by means of a microfoundation model based on a dynamic cost function specification. The separate identification of the impacts of externalities and cyclical utilization on input substitution patterns and on short- and long-run scale economies was provided for by the model. The results showed that supply-side agglomeration effects are greater than demand-side and scale economies are prevalent in US manufacturing.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1999
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Examining the employer-size wage premium in the manufacturing, retail trade, and service industries using employer-employee matched data
Article Abstract:
A study was conducted to analyze the employer-size wage premium using the New Worker Establishment Characteristics Database. The database contains data on workers and employers in all sectors and areas of the economy. The association between employer size and wages was then examined for workers in different industries. These include the manufacturing, retail trade and service industries. Results indicated that the establishment-size wage premium was similar across the three industries.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1999
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The geographic concentration of industry: does natural advantage explain agglomeration?
Article Abstract:
A study was conducted to determine how much of the geographic concentration of industries reported by Glenn Ellison and Edward L. Glaeser in 1997 can be correlated to natural advantages. The multiplicative industry effects were constrained to be nonnegative. Nonlinear least squares was then used to analyze state employment shares of four-digit manufacturing industries. Results indicated that 20% of observed geographic concentration can be explained by a small set of advantages.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1999
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