This paper is concerned with estimating the link between productivity and employment density and size in Australia’s capital cities. The estimation of the externalities arising out of agglomerations of firms on worker output can be a powerful addition to the economic appraisal of transport infrastructure projects and urban planning strategies. Understanding the magnitude of benefit that urban agglomerations can provide to productivity and economic growth can be very influential in determining how we are to plan and invest in our cities in the future. Estimates will be made with respect to two different variables – employment density and employment size – in order to learn how they may differ in their estimates and their ability to explain variances in productivity.
Below is the Agglomeration Paper by Roman Trubka.
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