Working Paper
Agglomeration and sorting in U.S. manufacturing
Abstract: Using data on U.S. manufacturing plants, I estimate a production function model that includes agglomeration intensity as a component of total factor productivity and allows agglomeration benefits to vary across establishments, which can lead to sorting. I find that agglomeration benefits decline with unobserved establishment-level raw productivity.
JEL Classification: D22; D24; E24; L11; R11; R32;
https://doi.org/10.17016/FEDS.2025.031
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File(s): File format is application/pdf https://www.federalreserve.gov/econres/feds/files/2025031pap.pdf
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Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: Finance and Economics Discussion Series
Publication Date: 2025-04-23
Number: 2025-031