Seminario Grupo de Investigación ADETRE: "Urban growth and its aggregate implications" (joint with Gilles Duranton)

Impartido por: Diego Puga

Centro de Estudios Monetarios y Financieros (CEMFI)

Lugar: Seminario M1 de la Facultad de Economía y Empresa

Fecha: 7 de mayo de 2019

Hora: 13,00h.

Abstract: We develop an urban growth model where human capital spillovers foster entrepreneurship and learning in heterogenous cities. Incumbent residents limit city expansion through land-use regulations so that commuting and housing costs do not outweigh productivity gains. The model builds on strong microfoundations, matches key regularities at the city and economy-wide levels, and generates novel predictions for which we provide evidence. It can be quantified relying on few parameters, provides a basis to estimate the main ones, and remains transparent regarding its mechanisms. We use this to assess quantitatively the effect of cities on economic growth and examine a variety of counterfactuals.