Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69542
Authors: 
von Ehrlich, Maximilian
Seidel, Tobias
Year of Publication: 
2012
Series/Report no.: 
CESifo Working Paper: Labour Markets 4028
Abstract: 
In contrast to what several papers have argued recently, we show that firm heterogeneity fosters agglomeration of economic activity. If firms are more similar with respect to their total factor productivity, each company faces a lower propensity to export. This renders the home market more important speaking against agglomeration. We also relate changes in firm heterogeneity to technological progress which allows us to derive novel insights on the role of technology for the location of economic activity.
Subjects: 
firm heterogeneity
agglomeration
technological change
trade
labor mobility
JEL: 
F12
F22
R12
Document Type: 
Working Paper

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