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The Costs of Agglomeration: Land Prices in French Cities
Gilles Duranton*
Last modified: 2012-07-14
Abstract
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.
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.