The Cost of Agglomeration: Land Prices in Cities
Article dans une revue: We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French house and land price data. After handling a number of estimation concerns, we find that the elasticity of urban costs increases with city population with an estimate of about 0.03 for an urban area with 100,000 inhabitants to 0.08 for an urban area of the size of Paris. Our approach also yields a number of intermediate outputs of independent interest such as the share of housing in expenditure, the elasticity of unit house and land prices with respect to city population, and within-city distance gradients for house and land prices.
Auteur(s)
Pierre-Philippe Combes, Gilles Duranton, Laurent Gobillon
Revue
- Review of Economic Studies
Date de publication
- 2019
Mots-clés JEL
Mots-clés
- Urban costs
- House prices
- Land prices
- Land use
- Agglomeration
Référence interne
- 2441/53r60a8s3kup1vc9k040oe10l
Pages
- pp. 1556-1589
URL de la notice HAL
Version
- 1
Volume
- 86