1 Department of Business and Economics, Faculty of Business and Social Sciences, SDU2 Department of Business and Economics, Faculty of Business and Social Sciences, SDU
It is difficult to estimate the impact of geographic clustering on productivity because of endogeneity issues. I use birthplace-cluster distance as an instrumental variable for the incidence of clustering of prominent classical composers born between 1750 and 1899. I find that geographic clustering strongly impacts the productivity of the clustering individuals: composers were approx. 33 percentage points more productive while they remained in a geographic cluster. Top composers and composers who migrated to the cluster are the greatest beneficiaries of clustering. The benefit depends on the clustering intensity and has a long-term impact.
Journal of Urban Economics, 2013, Vol 73, Issue 1, p. 94-110