%0 Report %A Combes, Pierre-Philippe %A Duranton, Gilles %A Gobillon, Laurent %T The Costs of Agglomeration: Land Prices in French Cities %D 2012 %8 2012 Nov %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 7027 %U https://www.iza.org/publications/dp7027 %X 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. %K urban costs %K land prices %K land use %K agglomeration