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The Impact of the Spatial Population Distribution on Economic Growth: Evidence from the United States

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  • Constantin Bürgi
  • Nisan Gorgulu

Abstract

We look at a part of the spatial angle of economic growth. We introduce a new measure Spatial Population Concentration (SPC) that captures the weighted average population surrounding every person within a geographic area. The weights are a function of the distance between the person in question and everyone else. One special case of the SPC would be to measure how many people live on average within a given radius of every person within a geographic area. We then calculate the SPC measure at the US county level for various radii and identify that the measure has the strongest relationship with subsequent economic growth for a 25km radius. Interacting SPC with various infrastructure measures increases the radius to 50km. This suggests that regional policies which affect density as infrastructure projects should target the 25-50km distance range to maximize the growth impact.

Suggested Citation

  • Constantin Bürgi & Nisan Gorgulu, 2022. "The Impact of the Spatial Population Distribution on Economic Growth: Evidence from the United States," CESifo Working Paper Series 10008, CESifo.
    • Handle: RePEc:ces:ceswps:_10008
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    More about this item

    Keywords

    spatial population concentration; endogeneous growth; spillover; the United States;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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