Urban Productivity Estimation with Heterogeneous Prices and Labour

David Maré

No 16_21, Working Papers from Motu Economic and Public Policy Research

Abstract: This study estimates differences in productivity (mfp) across New Zealand urban areas, with a focus on the size of Auckland’s productivity premium. The estimates are based on analysis of firm-level data from Statistics New Zealand’s Longitudinal Business Database. The methods used in the paper overcome some of the biases that arise in standard approaches to spatial productivity estimation - biases arising from imperfect competition, spatial price variation, firm heterogeneity, and labour-sorting across cities. Ignoring these factors leads to biased estimates of the Auckland’s relative productivity performance. The study also investigates industry differences in spatial productivity patterns.

Keywords: Urban productivity; agglomeration; production function estimation; imperfect competition; input price variation (search for similar items in EconPapers)
JEL-codes: D24 R30 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2016-11
New Economics Papers: this item is included in nep-eff and nep-ure
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:mtu:wpaper:16_21

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