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Is New York City Still Propelling Growth In Its Suburbs?: A Study Of Economic Spillover Effects Through Spatial Contiguity

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  • Michael L. Lahr

    (Rutgers University, Center for Urban Policy Research)

Abstract

In this paper I investigate from a strict efficiency perspective whether or not New York City’s suburbs should be helping the city in its economic development efforts. By analyzing metropolitan New York City, I am able to take advantage of the area’s spatial size and the ready availability of a pool of economic data below the metropolitan level (counties). In particular I disaggregate New York City’s economy into three sectors and the suburban geography into three rings and four radial subregions. In the case of the employment equation, national city-based industry variables tended to have expected effects on suburban economic growth when they were significant at all. Greater articulation of the geography of analysis through the inclusion of fixed effects does change the nature of these findings slightly, however. More surprising was a swing in the direction of the influence on suburban economic growth of the City’s nonfinancial nonmanufacturing sector when the analysis was performed using earnings data. This differential effect is rationalized by the City’s ability to retain high-wage service workers who reside in the suburbs

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Paper provided by EconWPA in its series Urban/Regional with number 0403007.

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Date of creation: 25 Mar 2004
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Handle: RePEc:wpa:wuwpur:0403007

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  1. Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February.
  2. Andrew F. Haughwout & Robert P. Inman, 2004. "How should suburbs help their central cities?," Staff Reports 186, Federal Reserve Bank of New York.
  3. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150, March.
  4. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  5. J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992. "Industrial Development in Cities," NBER Working Papers 4178, National Bureau of Economic Research, Inc.
  6. Chang, Sheng-Wen & Coulson, N. Edward, 2001. "Sources of Sectoral Employment Fluctuations in Central Cities and Suburbs: Evidence from Four Eastern U.S. Cities," Journal of Urban Economics, Elsevier, vol. 49(2), pages 199-218, March.
  7. Edward L. Glaeser & Matthew E. Kahn, 2001. "Decentralized Employment and the Transformation of the American City," Harvard Institute of Economic Research Working Papers 1912, Harvard - Institute of Economic Research.
  8. Richard Voith, 1992. "City and suburban growth: substitutes or complements?," Business Review, Federal Reserve Bank of Philadelphia, issue Sep, pages 21-33.
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