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American Economic Review: Vol. 97 No. 1 (March 2007)
AER Volume. 97, Issue 1 | 
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Urban Evolutions: The Fast, the Slow, and the Still
Article Citation
Duranton, Gilles. 2007. "Urban Evolutions: The Fast, the Slow, and the Still."
American Economic Review,
97(1): 197-221.
DOI: 10.1257/aer.97.1.197
DOI: 10.1257/aer.97.1.197
Abstract
With the use of French and US data, new and systematic evidence is provided about
the rapid location changes of industries across cities (the fast). Cities are also
slowly moving up and down the urban hierarchy (the slow), while the size distribution
of cities is skewed to the right and very stable (the still). The model proposed
here reproduces these three features. Small, innovation-driven shocks lead to the
churning of industries across cities. Then, cities slowly grow or decline following
net gains or losses of industries. These changes occur within a stable distribution.
The quantitative implications of the model are also explored. (JEL R12, R32)
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Authors
Duranton, Gilles
