Marshall's scale economies

• Published in: Journal of urban economics Vol. 53; no. 1; pp. 1 - 28
• Main Author: Henderson, J.Vernon
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 2003; Elsevier
• Series: Journal of Urban Economics
• Subjects: Agglomeration; Dynamic externalities; Economics; High technology; Industrial productivity; Machinery industry; Plant production; Plant size; Productivity; Scale economies; Spillovers; Urban economics; O300; Productivity; Scale economies; S620; R000; L600; Dynamic externalities; Agglomeration

Using panel data this paper estimates plant level production functions for machinery and high-tech industries that allow for scale externalities from other plants in the same industry locally and from the scale or diversity of local economic activity outside the own industry. The paper finds that th...