Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73827
Authors: 
Kluge, Jan
Lehmann, Robert
Year of Publication: 
2012
Series/Report no.: 
Ifo Working Paper 124
Abstract: 
This paper investigates whether localization economies as brought forward by Marshall(1890) or urbanization economies as mentioned by Jacobs (1970) are more decisive forregional gross value added per capita. Our novel approach is to explicitly allow forinterdependencies between these two theories and to take into account that the initiallevels of specialization and diversification might play a role. We therefore deploy amodel with interaction terms and find that these two theories are not mutually exclusivein most of our sectors. In addition, the empirical results show that the initial levels ofspecialization and diversification do matter as well.
Subjects: 
Localization and urbanization economies
interaction models
regional gross valued added
JEL: 
C33
O18
O40
R11
Document Type: 
Working Paper

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