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Technology and the Life Cycle of Cities

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Elise Brezis
Paul Krugman

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Abstract

During times of major technological change leading cities are often overtaken by upstart metropolitan areas. Such upheavals may be explained if the advantage of established urban centers rests on localized learning-by-doing. When a new technology for which this accumulated experience is irrelevant is introduced, older centers prefer to stay with a technology in which they are more efficient. New centers, however, turn to the new technology, and are competitive despite the raw state of that technology because of their lower land rents and wages. Over time, as the new technology matures, the established cities are overtaken.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4561.

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Date of creation: Dec 1993
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Handle: RePEc:nbr:nberwo:4561

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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.:
  1. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-56, September. [Downloadable!] (restricted)
    Other versions:
  2. Elise Brezis & Paul Krugman & Daniel Tsiddon, 1991. "Leapfrogging: A Theory of Cycles in National Technological Leadership," NBER Working Papers 3886, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  1. Gilles Duranton & Diego Puga, 1999. "Diversity and Specialisation in Cities: Why, Where and When does it Matter?," CEP Discussion Papers dp0433, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  2. Cuberes, David, 2008. "A Model of Sequential City Growth," MPRA Paper 8431, University Library of Munich, Germany. [Downloadable!]
  3. Duranton, Gilles, 2002. "City Size Distributions as a Consequence of the Growth Process," CEPR Discussion Papers 3577, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Cuberes, David, 2007. "A Model of Sequential City Growth," MPRA Paper 2172, University Library of Munich, Germany. [Downloadable!]
  5. Edward E. Leamer & Michael Storper, 2001. "The Economic Geography of the Internet Age," NBER Working Papers 8450, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. John Cantwell & Simona Iammarino, 2001. "The technological relationships between indigenous firms and foreign-owned MNCs in the European regions," ERSA conference papers ersa01p269, European Regional Science Association. [Downloadable!]
  7. Torben Klarl, 2009. "Modelling the folk theorem of spatial economics: a heterogeneous regional growth model," Discussion Paper Series 305, Universitaet Augsburg, Institute for Economics. [Downloadable!]
    Other versions:
  8. Gallo, Fredrik, 2005. "Increasing Returns, Input-Output Linkages, and Technological Leapfrogging," Working Papers 2005:22, Lund University, Department of Economics, revised 19 Jul 2006. [Downloadable!]
  9. Antti-Jussi Tahvanainen & Raine Hermans, 2008. "Agglomeration and Specialisation Patterns of Finnish Biotechnology. On the Search for an Economic Rationale of a Dispersed Industry Structure," Discussion Papers 1133, The Research Institute of the Finnish Economy. [Downloadable!]
  10. Catherine Beaudry, 2001. "Entry, Growth and Patenting in Industrial Clusters: A Study of the Aerospace Industry in the UK," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 8(3), pages 405-436, November. [Downloadable!] (restricted)
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