• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Localization and urbanization economies
      • The sources of agglomeration economies: why do cities and clusters exist?
      • The geography of agglomeration economies: cities and neighbourhoods
      • Agglomeration economies in a system of cities or regions
    • See Also
    • Bibliography
    • How to cite this article

urban agglomeration

William C. Strange
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Urban agglomeration is the spatial concentration of economic activity in cities. It can also take the form of concentration in industry clusters or in employment centres within a city. One reason that agglomeration takes place is that there exist external increasing returns, also known as agglomeration economies. Evidence indicates that there exist both urbanization economies, associated with city size, and localization economies, associated with the clustering of industry. Both effects attenuate geographically. Theoretical research has identified many sources of agglomeration economies, including labour market pooling, input sharing, and knowledge spillovers. Empirical research has offered evidence consistent with each of these.
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How to cite this article

Strange, William C. "urban agglomeration." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 13 December 2017 <http://www.dictionaryofeconomics.com/article?id=pde2008_U000064> doi:10.1057/9780230226203.1769

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