@TechReport{iza:izadps:dp7027, author={Combes, Pierre-Philippe and Duranton, Gilles and Gobillon, Laurent}, title={The Costs of Agglomeration: Land Prices in French Cities}, year={2012}, month={Nov}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={7027}, url={https://www.iza.org/publications/dp7027}, abstract={We develop a new methodology to estimate the elasticity of urban costs with respect to city population using French land price data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.041. Our approach also yields a number of intermediate outputs of independent interest such as a distance gradient for land prices and the elasticity of unit land prices with respect to city population. For the latter, our preferred estimate is 0.72.}, keywords={urban costs;land prices;land use;agglomeration}, }