The Cost of Agglomeration: Land Prices in Cities - GATE - Politiques publiques et espace Access content directly
Journal Articles Review of Economic Studies Year : 2019

The Cost of Agglomeration: Land Prices in Cities


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.
Fichier principal
Vignette du fichier
2018-pierre-philippe-combes-the-cost-of-agglomeration-land-prices-in-cities.pdf (1.29 Mo) Télécharger le fichier
Origin Files produced by the author(s)

Dates and versions

halshs-01938356 , version 1 (11-02-2022)



Pierre-Philippe Combes, Gilles Duranton, Laurent Gobillon. The Cost of Agglomeration: Land Prices in Cities. Review of Economic Studies, 2019, 86 (4), pp. 1556-1589. ⟨10.1093/restud/rdy063⟩. ⟨halshs-01938356⟩
364 View
446 Download



Gmail Mastodon Facebook X LinkedIn More