Aggregate employment growth and the deconcentration of metropolitan employment

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Aggregate employment growth and the deconcentration of metropolitan employment

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Satyajit Chatterjee
Gerald Carlino

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Abstract

In this paper, the authors document that the disparity in employment densities across U.S. metropolitan areas has lessened substantially over the postwar period. To account for this deconcentration of metropolitan employment, the authors develop a system-of-cities model in which an increase in aggregate metropolitan employment causes congestion costs to increase faster for the more dense metro areas. A calibrated version of the model reveals that the (roughly) two-and-a-half-fold increase in postwar aggregate metropolitan employment implies, by itself, more deconcentration than actually observed. Thus, rising aggregate metropolitan employment appears to be a powerful force favoring deconcentration, although some benefit of greater employment density appears to have partially offset the effects of rising congestion costs for the more dense metro areas.

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Paper provided by Federal Reserve Bank of Philadelphia in its series Working Papers with number 98-6.

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Date of creation: 1998
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Handle: RePEc:fip:fedpwp:98-6

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Other versions:
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Other versions:
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Other versions:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Marvin Goodfriend, 1999. "The role of a regional bank in a system of central banks. 1999 annual report of the Federal Reserve Bank of Richmond," Annual Report, Federal Reserve Bank of Richmond. [Downloadable!]
Patricia Beeson & David DeJong, 2002. "Divergence," Contributions to Macroeconomics, Berkeley Electronic Press, vol. 2(1), pages 1049-1049. [Downloadable!] (restricted)
Matteo Bellinzas, 2004. "Dinamiche demografiche, agglomerazione e determinanti economiche. Il caso italiano," Working Paper CRENoS 200407, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
Gerald A. Carlino, 1998. "Trends in metropolitan employment growth," Business Review, Federal Reserve Bank of Philadelphia, issue Jul, pages 13-22. [Downloadable!]
Marvin Goodfriend, 2000. "The role of a regional bank in a system of central banks," Economic Quarterly, Federal Reserve Bank of Richmond, issue Win, pages 7-25. [Downloadable!]
Other versions:
- Marvin Goofriend, 1999. "The role of a regional bank in a system of central banks," Working Paper 99-04, Federal Reserve Bank of Richmond. [Downloadable!]
- Goodfriend, Marvin, 1999. "The role of a regional bank in a system of central banks," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 51(1), pages 51-71, December. [Downloadable!] (restricted)
Sukkoo Kim, 2002. "The Reconstruction of the American Urban Landscape in the Twentieth Century," NBER Working Papers 8857, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Gerald Carlino & Satyajit Chatterjee, 1999. "Postwar trends in metropolitan employment growth: decentralization and deconcentration," Working Papers 99-10, Federal Reserve Bank of Philadelphia. [Downloadable!]

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