Evolving Agglomeration in the U.S. Auto Supplier Industry

24 Pages Posted: 11 Jan 2008

See all articles by Thomas Klier

Thomas Klier

Federal Reserve Bank of Chicago

Daniel P. McMillen

University of Illinois at Chicago - Center for Urban Real Estate

Multiple version iconThere are 2 versions of this paper

Date Written: 2007-07

Abstract

Using nonparametric descriptive tools developed by Duranton and Overman, we show that both new and old auto supplier plants are highly concentrated in the eastern United States. Conditional logit models imply that much of this concentration can be explained parametrically by distance from Detroit, proximity to assembly plants, and access to the interstate highway system. New plants are more likely to be located in zip codes that are close to existing supplier plants. However, the degree of clustering observed is still greater than implied by the logit estimates.

Suggested Citation

Klier, Thomas and McMillen, Daniel P., Evolving Agglomeration in the U.S. Auto Supplier Industry (2007-07). Journal of Regional Science, Vol. 48, Issue 1, pp. 245-267, February 2008, Available at SSRN: https://ssrn.com/abstract=1082109 or http://dx.doi.org/10.1111/j.1467-9787.2008.00549.x

Thomas Klier (Contact Author)

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604-1413
United States

Daniel P. McMillen

University of Illinois at Chicago - Center for Urban Real Estate ( email )

601 South Morgan Street
MC 144
Chicago, IL 60607-7121
United States

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
15
Abstract Views
546
PlumX Metrics