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The agglomeration effect in Russian cities. Analysis based on the theory of spatial equilibrium

Student: Svetlana Bagrationova

Supervisor: Alexander Skorobogatov

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Applied Economics and Mathematical Methods (Master)

Final Grade: 8

Year of Graduation: 2016

Relevance of the topic of master's thesis is due to the relatively small studies of cities of economy in Russian literature and the need to identify the best method for determining the agglomeration effect. Study agglomerations can give a more complete explanation of why the city can be so productive and why so many people move to live in the big cities. This study is based on the theory of spatial equilibrium and the Rosen-Roback model. Objectives of the study: • Determine the effect of poor environment and the level of crime on amenities, specific production level of city and amount of land that is available for construction. • To assume a level of agglomeration effect in the cities, in order to achieve maximum production level in cities. The object of the study was the characteristics of Russian cities in 2000-2013 years. Subject of research: Identify the relationship between the variables of interest and exogenous variables through linear function of regression estimates between the variable of interest and endogenous variables. The scientific novelty of the research is to identify the reasons for the method of intercity migration, taking into account urban agglomeration effect and interpretation of the model parameters. The study includes an empirical analysis. On the basis of theoretical conclusions is given an adequate assessment of the impact of interest variables on the individual sector, the production and construction sectors. In the research given the selection and interpretation of the different parameters, such as the level disamenities and agglomeration effect coefficient. The structure and scope of the thesis. The work includes an introduction, two chapters, conclusion and bibliography.

Full text (added May 20, 2016)

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