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The Effect of Information and Communication Technologies on Urban Structure

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  • Y Ioannides
  • Henry Overman
  • Esteban Rossi-Hansberg
  • Kurt Schmidheiny

Abstract

The geographic concentration of economic activity occurs because transport costs for goods, people and ideas give individuals and organisations incentives to locate close to each other. Historically, all of these costs have been falling. Such changes could lead us to predict the death of distance. This paper is concerned with one aspect of this prediction: the impact that less costly communication and transmission of information might have on cities and the urban structure. We develop a model which suggests that improvements in ICT will increase the dispersion of economic activity across cities making city sizes more uniform. We test this prediction using cross country data and find empirical support for this conclusion.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0812.

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Date of creation: Jul 2007
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Handle: RePEc:cep:cepdps:dp0812

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Keywords: ICT; urban structure; cross country data;

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  9. Xavier Gabaix & Rustam Ibragimov, 2006. "Log(Rank-1/2): A Simple Way to Improve the OLS Estimation of Tail Exponents," Harvard Institute of Economic Research Working Papers 2106, Harvard - Institute of Economic Research.
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Cited by:
  1. Ibragimov, Marat & Ibragimov, Rustam & Kattuman, Paul, 2013. "Emerging markets and heavy tails," Journal of Banking & Finance, Elsevier, vol. 37(7), pages 2546-2559.
  2. Hong, Junjie & Fu, Shihe, 2008. "Information and communication technologies and geographic concentration of manufacturing industries: Evidence from China," MPRA Paper 7574, University Library of Munich, Germany.
  3. Suzanne Kok, 2013. "Returns to Communication in Specialised and Diversified US Cities," CPB Discussion Paper 236, CPB Netherlands Bureau for Economic Policy Analysis.
  4. Francois, Joseph & Manchin, Miriam, 2013. "Institutions, Infrastructure, and Trade," World Development, Elsevier, vol. 46(C), pages 165-175.
  5. Anastasios Xepapadeas & Efthymia Kyriakopoulou, . "Environmental Policy, Spatial Spillovers and the Emergence of Economic Agglomerations," DEOS Working Papers 1016, Athens University of Economics and Business.
  6. Suzanne Kok & Bas ter Weel, 2014. "Cities, Tasks and Skills," CPB Discussion Paper 269, CPB Netherlands Bureau for Economic Policy Analysis.
  7. Ioannides, Yannis & Skouras, Spyros, 2013. "US city size distribution: Robustly Pareto, but only in the tail," Journal of Urban Economics, Elsevier, vol. 73(1), pages 18-29.
  8. Bas, Maria & Ledezma, Ivan, 2007. "Market Access and the Evolution of within Plant Productivity in Chile," Economics Papers from University Paris Dauphine 123456789/6913, Paris Dauphine University.
  9. Kok, Suzanne & ter Weel, Bas, 2014. "Cities, Tasks and Skills," IZA Discussion Papers 8053, Institute for the Study of Labor (IZA).

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