The Costs of Agglomeration: Land Prices in French Cities

The Costs of Agglomeration: Land Prices in French Cities

[SHS:ECO] Humanities and Social Sciences/Economy and finances

urban costs

land prices

land use

agglomeration

We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French land price data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.041. Our approach also yields a number of intermediate outputs of independent interest such as a distance gradient for land prices and the elasticity of unit land prices with respect to city population. For the latter, our preferred estimate is 0.72.

Combes, Pierre-Philippe

Duranton, Gilles

Gobillon, Laurent

2012-11

ENG

preprint

http://halshs.archives-ouvertes.fr/halshs-00793632

http://halshs.archives-ouvertes.fr/docs/00/79/36/32/PDF/WP_2012_-_Nr_35.pdf