DELINEATING METROPOLITAN AREAS USING LAND PRICES*

Authors


  • *

    The author would like to thank Frank Bickenbach, Bernard Fingleton, Gilles Duranton, Wilfried Koch, Reinhold Kosfeld, Paul Kramer, Tomoya Mori, Se-il Mun, two anonymous referees, and the participants of the conference on Empirical Methods for the Study of Economic Agglomerations, Kyoto, for helpful discussions and suggestions, Carmen Andersson and Andrea Schäfer for research assistance, and the European Commission financial support.

Abstract

ABSTRACT This paper proposes an approach to delineating metropolitan areas that is more general than the standard approaches in three respects: First, it uses the fraction of land prices attributable to economies of urban agglomeration instead of using commuting intensities as an indicator of economic integration between metropolitan centers and their hinterlands. Second, it identifies metropolitan centers endogenously instead of determining them exogenously. And third, it takes metropolitan subcenters explicitly into account. An empirical illustration is used to show that the approach tends to delineate fewer but larger metropolitan areas in densely populated regions, and smaller metropolitan areas in sparsely populated regions.

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