Board of Governors of the Federal Reserve System
04/23/2025 | Press release | Distributed by Public on 04/23/2025 11:45
Agglomeration and sorting in U.S. manufacturing
April 2025
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.
Keywords: Agglomeration, Sorting, Census of Manufactures.
DOI: https://doi.org/10.17016/FEDS.2025.031
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