Residents both enjoy the policies adopted in their cities, and choose those policies. If some people can better evaluate policies than can others, then the most perceptive people will be the most willing to move to the city with better policies, thereby making that city more likely to adopt good policies in the future. Such migration can cause agglomeration, with some cities prospering and others failing.
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Volume (Year): 37 (2007) Issue (Month): 6 (November) Pages: 703-716 Download reference. The following formats are available: HTML
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Edward L. Glaeser & Andrei Shleifer, 2002.
"The Curley Effect,"
NBER Working Papers
8942, National Bureau of Economic Research, Inc.
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Francesco Caselli & Massimo Morelli, 2001.
"Bad Politicians,"
NBER Working Papers
8532, National Bureau of Economic Research, Inc.
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