Evolving Agglomeration in the U.S. Auto Supplier Industry

43 Pages Posted: 6 Dec 2006

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: November 2006

Abstract

Using nonparametric descriptive tools developed by Duranton and Overman (2005), 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.

Keywords: Spatial econometrics, non-parametric statistics, agglomeration, plant location, auto supplier industry

JEL Classification: R30, R15, L62

Suggested Citation

Klier, Thomas and McMillen, Daniel P., Evolving Agglomeration in the U.S. Auto Supplier Industry (November 2006). FRB of Chicago Working Paper No. 2006-20, Available at SSRN: https://ssrn.com/abstract=949866 or http://dx.doi.org/10.2139/ssrn.949866

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 have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
108
Abstract Views
1,213
rank
306,660
PlumX Metrics