Plausibly Exogenous [731] - Agglomeration (01/19/2022)
LHS Variable
Agglomeration externalities
RHS Variable
Spatial distribution of establishments
Source of Exogenous Variation
Abolition of a unique regulation that restricted where new restaurants could locate: before 2005, Milan Milan mandated a minimum distance between restaurants that kept the spatial distribution of restaurants artificially uniform. As a consequence, restaurants were evenly distributed across neighborhoods. The regulation was abolished in 2005 by a nationwide reform that allowed new restaurants to locate anywhere in the city.
- Leonardi and Moretti (2022), “The Agglomeration of Urban Amenities: Evidence from Milan Restaurants”