Type
Article
Title
The cost of agglomeration: Land prices in cities
Author(s)
COMBES Pierre-Philippe - Département d'économie (Author)
DURANTON Gilles - University of Pennsylvania (Penn) (Author)
GOBILLON Laurent - Institut National d'Etudes Démographiques (Author)
Editor
GB : Oxford University Press
Volume
forthcoming
ISSN
1467937X
DOI
10.1093/restud/rdy063
Keywords
Urban costs, House prices, Land prices, Land use, Agglomeration
Abstract
EN
We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French house and land price data. After handling a number of estimation concerns, we find that the elasticity of urban costs increases with city population with an estimate of about 0.03 for an urban area with 100,000 inhabitants to 0.08 for an urban area of the size of Paris. Our approach also yields a number of intermediate outputs of independent interest such as the share of housing in expenditure, the elasticity of unit house and land prices with respect to city population, and within-city distance gradients for house and land prices.
BIBLIOGRAPHIC QUOTE
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