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Abstract: In this paper we analyze a unique data set compiled by London Transport since 1953, concerning the number of people working in the London CBD. We consider whether the marked changes over time in employment are attributable to changes in government policy, industrial structure, macroeconomic changes, transport costs or agglomeration economies. Using cointegration methods we conclude that macroeconomic developments are quantitatively the most important factor, although transport costs have significant effects. Government decentralization policy appears to have had little effect, although our results are consistent with the presence of agglomeration economies.