An agglomeration is a continuous urban settlement. Motu’s agglomeration research focuses on New Zealand's largest city - Auckland.
On the whole people and firms have a choice about where they are located. Being in a city costs more but:
- People are willing to move there because they get paid more and/or enjoy ‘amenities’ that cities have to offer.
- Firms move there despite the higher land and labour costs, because they are more productive in cities.
- Policy-makers affect location choices through their investments in infrastructure and amenities.
Our research focus
Motu’s current and recent agglomeration research focus includes:
- How large are regional differences in productivity, innovation, wages - and why? (This research has a particular focus on Auckland.)