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2005•RePEc: Research Papers in EconomicsOpen access

Social Agglomeration Externalities

Rainald Borck

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Abstract

This paper examines social agglomeration externalities. Using survey data from the German Socio-Economic Panel, I examine the link between city size and different measures of consumption, social interaction and social capital. Further, using responses to satisfaction questions, I analyse whether individuals are compensated for diseconomies of agglomeration by positive agglomeration externalities in other areas. This equilibrium hypothesis cannot be rejected.

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What this paper is about

This paper examines social agglomeration externalities. Using survey data from the German Socio-Economic Panel, I examine the link between city size and different measures of consumption, social interaction and social capital. Further, using responses to satisfaction questions, I analyse whether individuals are compensated for diseconomies of agglomeration by positive agglomeration externalities in other areas. This equilibrium hypothesis cannot be rejected.

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Available abstract

This paper examines social agglomeration externalities. Using survey data from the German Socio-Economic Panel, I examine the link between city size and different measures of consumption, social interaction and social capital. Further, using responses to satisfaction questions, I analyse whether individuals are compensated for diseconomies of agglomeration by positive agglomeration externalities in other areas. This equilibrium hypothesis cannot be rejected.

Key concepts: Diseconomies of scale, Externality, Economies of agglomeration, Economics, Consumption (sociology), Social capital, Panel data, Economic geography

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