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question 2 interpreting empirical evidence on agglomeration economies a few...

Question: question 2 interpreting empirical evidence on agglomeration economies a few...

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Question 2 (Interpreting empirical evidence on agglomeration economies) A few sentences on each part. 2.1) Why are higher wages in bigger cities an indication of the existence of agglomeration economies? 2.2) What is the main concern with interpreting urban wage premia as evidence of agglomeration economies?

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