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The Rise of the Sunbelt

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Author Info

  • Edward L. Glaeser

    (Kennedy School of Government, Harvard University and NBER, Taubman-344, 79 JFK Street, Cambridge, MA 02138-5801, USA)

  • Kristina Tobio

    () (Kennedy School of Government, Harvard University, Taubman-348, 79 JFK Street, Cambridge, MA 02138-5801, USA)

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    Abstract

    In the last 50 years, population and incomes have increased steadily throughout much of the Sunbelt. This paper assesses the relative contributions of rising productivity, rising demand for Southern amenities, and increases in housing supply to the growth of warm areas, using data on income, housing price, and population growth. Before 1980, economic productivity increased significantly in warmer areas and drove the population growth in those places. Since 1980, productivity growth has been more modest, but housing supply growth has been enormous. We infer that new construction in warm regions represents a growth in supply, rather than demand, from the fact that prices are generally falling relative to the rest of the country. The relatively slow pace of housing price growth in the Sunbelt, relative to the rest of the country and relative to income growth, also implies that there has been no increase in the willingness to pay for sun-related amenities. As such, it seems that the growth of the Sunbelt has little to do with the sun.

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    Bibliographic Info

    Article provided by Southern Economic Association in its journal Southern Economic Journal.

    Volume (Year): 74 (2008)
    Issue (Month): 3 (January)
    Pages: 610-643

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    Handle: RePEc:sej:ancoec:v:74:3:y:2008:p:610-643

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    Cited by:
    1. Winters, John V., 2009. "Wages and prices: Are workers fully compensated for cost of living differences?," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 632-643, September.
    2. Michaels, Guy & Rauch, Ferdinand & Redding, Stephen J, 2008. "Urbanization and Structural Transformation," CEPR Discussion Papers 7016, C.E.P.R. Discussion Papers.
    3. Crafts, Nicholas & Klein, Alexander, 2013. "Geography and Intra-National Home Bias: U.S. Domestic Trade in 1949 and 2007," CAGE Online Working Paper Series 111, Competitive Advantage in the Global Economy (CAGE).
    4. Michael, Davidsson & Dan S., Rickman, 2012. "U.S. Micropolitan Area Growth: A Spatial Equilibrium Growth Analysis," MPRA Paper 40394, University Library of Munich, Germany.
    5. Stephan Whitaker, 2012. "Measures beyond the college degree share to guide inter-regional comparisons and workforce development," Working Paper 1231, Federal Reserve Bank of Cleveland.
    6. Edward L. Glaeser & Matthew E. Kahn, 2008. "The Greenness of Cities: Carbon Dioxide Emissions and Urban Development," NBER Working Papers 14238, National Bureau of Economic Research, Inc.
    7. Miguel Lopes & Patricia Palma & Miguel e Cunha, 2011. "Tolerance is Not Enough: The Moderating Role of Optimism on Perceptions of Regional Economic Performance," Social Indicators Research, Springer, vol. 102(2), pages 333-350, June.
    8. Partridge, Mark D. & Rickman, Dan S. & Ali, Kamar & Olfert, M. Rose, 2010. "Recent spatial growth dynamics in wages and housing costs: Proximity to urban production externalities and consumer amenities," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 440-452, November.
    9. Hirsch, Barry T., 2008. "Wage Gaps Large and Small," IZA Discussion Papers 3375, Institute for the Study of Labor (IZA).
    10. Edward L. Glaeser & Giacomo Ponzetto & Kristina Tobio, 2010. "The Varieties of Regional Change," Working Papers 472, Barcelona Graduate School of Economics.

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