by Gabriel Ahlfeldt (London School of Economics, LSE), Stephen Redding (Princeton University), Daniel Sturm (LSE) and Nikolaus Wolf (Humboldt University Berlin)
The full post and online access to the full article is available on the Microeconomics website
Economic activity is highly unevenly distributed across geographical space. This is reflected in the existence of cities as well as the concentration of economic functions in specific locations within cities, such as Manhattan in New York and the Square Mile in London. Understanding the strength of the forces of agglomeration that underlie these concentrations of economic activity is central to a range of policy questions.
What makes cities thrive? Is it proximity to natural resources – such as rivers, oceans, and energy sources – that make places attractive for firms to locate production? Is it shared amenities – such as leafy streets and scenic views – that make them attractive places for people…
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