The Costs of Agglomeration: House and Land Prices in French Cities

S-Tier
Journal: Review of Economic Studies
Year: 2019
Volume: 86
Issue: 4
Pages: 1556-1589

Authors (3)

Pierre-Philippe Combes (not in RePEc) Gilles Duranton (not in RePEc) Laurent Gobillon (Paris School of Economics)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:oup:restud:v:86:y:2019:i:4:p:1556-1589.
Journal Field
General
Author Count
3
Added to Database
2026-01-25