Conferences at Department of Economics, University of Toronto, RCEF 2012: Cities, Open Economies, and Public Policy

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The Costs of Agglomeration: Land Prices in French Cities

Gilles Duranton*

Last modified: 2012-07-14


We develop a new methodology to estimate the elasticity of urban costs with respect city population using French land price
data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.033. 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 0.82.