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Prime locations

Author

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  • Ahlfeldt, Gabriel
  • Albers, Thilo
  • Behrens, Kristian

Abstract

Using establishment-level data for the three largest US metropolitan areas, big data for 125 global cities world-wide, and a methodology combining both, we delineate the densest clusters of economic activity. We show that---within cities---these prime locations concentrate 35\% of tradable services employment on 0.3\% of developable land. Although only 40\% of our sampled cities are monocentric, prime locations are---consistent with the theoretical workhorse urban models---the nuclei of distance gradients, even in polycentric cities. Cities with fewer prime locations further concentrate a larger tradable services share in them, underscoring the importance of agglomeration economies for those locations.

Suggested Citation

  • Ahlfeldt, Gabriel & Albers, Thilo & Behrens, Kristian, 2022. "Prime locations," CEPR Discussion Papers 15470, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15470
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    1. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    2. Gilles Duranton & J. V. Henderson & William C. Strange (ed.), 2015. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 5, number 5.
    3. Gabriel M. Ahlfeldt & Daniel P. McMillen, 2018. "Tall Buildings and Land Values: Height and Construction Cost Elasticities in Chicago, 1870–2010," The Review of Economics and Statistics, MIT Press, vol. 100(5), pages 861-875, December.
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    2. Ahlfeldt, Gabriel M. & Barr, Jason, 2022. "The economics of skyscrapers: A synthesis," Journal of Urban Economics, Elsevier, vol. 129(C).

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    More about this item

    Keywords

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    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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