Suppose that the growth rate of an industry in an urban area has been found to be

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Suppose that the growth rate of an industry in an urban area has been found to be a function of:

– The growth rate of labor, with a coefficient of 0.75

– The growth rate of capital, with a coefficient of 0.4

– The employment level in the industry

– The rate of growth of employment in the urban area

– The number of flights departing daily from the local airport.

Is growth in this local industry subject to:

– Static localization economies?

– Dynamic localization economies?

– Static urbanization economies?

– Dynamic urbanization economies?

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Urban Economics And Real Estate: Theory And Policy

ISBN: 9781621577706

2nd Edition

Authors: John F. McDonald, Daniel P. McMillen

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