Template-Type: ReDIF-Paper 1.0
Author-Name: David C. Maré
Author-X-Name-First: David
Author-X-Name-Last: Maré
Author-Email: dave.mare@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research
Title: Urban Productivity Estimation with Heterogeneous Prices and Labour
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.
Length: 55 pages
Creation-Date: 2016-11
File-URL: https://motu-www.motu.org.nz/wpapers/16_21.pdf
Number: 16_21
Classification-JEL: D24, R30
Keywords: Urban productivity; agglomeration; production function estimation; imperfect competition; input price variation
Handle: RePEc:mtu:wpaper:16_21