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Research Working Paper
Urban Growth Shadows
Does a location's growth benefit or suffer from being geographically close to large economic centers? Spatial proximity may lead to competition and hurt growth, but it may also generate positive spillovers and enhance growth. Using data on U.S. counties and metro areas for the period 1840–2017, we document this tradeoff between urban shadows and urban spillovers. Proximity to large urban centers was negatively associated with growth from 1840 to 1920, and positively associated with growth after 1920. Using a two-city spatial equilibrium model with intra-city and inter-city commuting, we show that the secular evolution of commuting costs can account for this and other observed patterns in the data.
Cite this item
David Cuberes & Klaus Desmet & Jordan Rappaport, Urban Growth Shadows, Federal Reserve Bank of Kansas City, Research Working Paper RWP 19-8, 18 Nov 2019.
- N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
Keywords: Urban Shadows; Agglomeration Economies; Spatial Economics; Urban Systems; City Growth; United States 1840-2017
This item with handle RePEc:fip:fedkrw:rwp19-08
is also listed on EconPapers
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