Agglomerative Forces and Cluster Shapes

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Agglomerative Forces and Cluster Shapes

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Title: Agglomerative Forces and Cluster Shapes
Author: Kerr, William Robert; Kominers, Scott Duke

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Citation: Kerr, William R., and Scott Duke Kominers. "Agglomerative Forces and Cluster Shapes." Review of Economics and Statistics (forthcoming).
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Abstract: We model spatial clusters of similar firms. Our model highlights how agglomerative forces lead to localized, individual connections among firms, while interaction costs generate a defined distance over which attraction forces operate. Overlapping firm interactions yield agglomeration clusters that are much larger than the underlying agglomerative forces themselves. Empirically, we demonstrate that our model's assumptions are present in the structure of technology and labor flows within Silicon Valley and its surrounding areas. Our model further identifies how the lengths over which agglomerative forces operate influence the shapes and sizes of industrial clusters; we confirm these predictions using variations across patent technology clusters.
Published Version: doi:10.1162/REST_a_00471
Terms of Use: This article is made available under the terms and conditions applicable to Open Access Policy Articles, as set forth at
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