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Did the Death of Distance Hurt Detroit and Help New York?

In: Agglomeration Economics

Author

Listed:
  • Edward L. Glaeser
  • Giacomo A. M. Ponzetto

Abstract

Urban proximity can reduce the costs of shipping goods and speed the flow of ideas. Improvements in communication technology might erode these advantages and allow people and firms to decentralize. However, improvements in transportation and communication technology can also increase the returns to new ideas, by allowing those ideas to be used throughout the world. This paper presents a model that illustrates these two rival effects that technological progress can have on cities. We then present some evidence suggesting that the model can help us to understand why the past thirty-five years have been kind to idea-producing places, like New York and Boston, and devastating to goods-producing cities, like Cleveland and Detroit.
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Suggested Citation

  • Edward L. Glaeser & Giacomo A. M. Ponzetto, 2010. "Did the Death of Distance Hurt Detroit and Help New York?," NBER Chapters,in: Agglomeration Economics, pages 303-337 National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:7985
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Klaus Desmet & Esteban Rossi-Hansberg, 2014. "Spatial Development," American Economic Review, American Economic Association, vol. 104(4), pages 1211-1243, April.
    2. Suzanne Kok, 2013. "Returns to Communication in Specialised and Diversified US Cities," CPB Discussion Paper 236, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Catherine BAUMONT & Rachel GUILLAIN, 2013. "Interactions, Spillovers De Connaissance Et Croissance Des Villes Européennes - Quel Est Le Rôle De La Géographie, Du Climat Institutionnel Et Des Réseaux Des Firmes Multinationales ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 161-207.
    4. 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.
    5. Fu, Shihe & Hong, Junjie, 2008. "Information and communication technologies and geographic concentration of manufacturing industries: evidence from China," MPRA Paper 7446, University Library of Munich, Germany.
    6. Veronica Guerrieri & Daniel Hartley & Erik Hurst, 2012. "Within-City Variation in Urban Decline: The Case of Detroit," American Economic Review, American Economic Association, vol. 102(3), pages 120-126, May.
    7. Kurt A. Hafner, 2013. "Agglomeration economies and clustering -- evidence from German and European firms," Applied Economics, Taylor & Francis Journals, vol. 45(20), pages 2938-2953, July.
    8. Suzanne Kok & Bas ter Weel, 2014. "Cities, Tasks, And Skills," Journal of Regional Science, Wiley Blackwell, vol. 54(5), pages 856-892, November.
    9. Edward L. Glaeser & Joshua D. Gottlieb, 2008. "The Economics of Place-Making Policies," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 155-253.
    10. Simon Choi & Changkeun Park & JiYoung Park, 2014. "A spatio-temporal analysis of population and employment growth for Southern California," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 19-40, January.
    11. Michael Amior & Alan Manning, 2015. "The Persistence of Local Joblessness," CEP Discussion Papers dp1357, Centre for Economic Performance, LSE.
    12. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    13. Partridge, Mark D. & Rickman, Dan S. & Ali, Kamar & Olfert, M. Rose, 2009. "Agglomeration spillovers and wage and housing cost gradients across the urban hierarchy," Journal of International Economics, Elsevier, vol. 78(1), pages 126-140, June.
    14. Liao, Wen-Chi, 2012. "Inshoring: The geographic fragmentation of production and inequality," Journal of Urban Economics, Elsevier, vol. 72(1), pages 1-16.
    15. repec:wsi:afexxx:v:10:y:2015:i:01:n:s2010495215500074 is not listed on IDEAS
    16. Chen, Zhao & Lu, Ming & Ni, Pengtu, 2016. "Urbanization and Rural Development in the People’s Republic of China," ADBI Working Papers 596, Asian Development Bank Institute.
    17. Jeffrey L. Furman, 2013. "The America COMPETES Acts: The Future of US Physical Science and Engineering Research?," Innovation Policy and the Economy, University of Chicago Press, vol. 13(1), pages 101-149.
    18. Kok, Suzanne, 2014. "Town and city jobs: How your job is different in another location," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 58-67.
    19. Anne Aguilera & Virginie Lethiais & Alain Rallet, 2012. "Spatial and non-spatial proximity in inter-firm relations: An empirical analysis," Post-Print hal-00703639, HAL.
    20. Mark D. Partridge, 2010. "The duelling models: NEG vs amenity migration in explaining US engines of growth," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 513-536, August.
    21. Karima Kourtit & Peter Nijkamp & Mark D. Partridge & Hans Lööf & Pardis Nabavi, 2013. "Increasing returns to smart cities," Regional Science Policy & Practice, Wiley Blackwell, vol. 5(2), pages 255-262, June.
    22. repec:eee:soceps:v:58:y:2017:i:c:p:72-86 is not listed on IDEAS
    23. Jeffrey L. Furman, 2012. "The America COMPETES Acts: The Future of U.S. Physical Science and Engineering Research?," NBER Chapters,in: Innovation Policy and the Economy, Volume 13, pages 101-149 National Bureau of Economic Research, Inc.
    24. Lööf, Hans & Nabavi, Pardis, 2013. "Learning and Productivity of Swedish Exporting Firms: The importance of Innovation Efforts and the Geography of Innovation," Working Paper Series in Economics and Institutions of Innovation 296, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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