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The Death and Life of Great British Cities

Author

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  • Heblich, Stephan
  • Nagy, Dávid Krisztián
  • Trew, Alex
  • Zylberberg, Yanos

Abstract

Does industrial concentration shape the life and death of cities? We identify settlements from historical maps of England and Wales (1790–1820), isolate exogenous variation in their late 19th-century size and industrial concentration, and estimate the causal impact of size and concentration on later dynamics. Industrial concentration has a negative effect on long-run productivity — independent of industry trends and consistent with cross-industry Jacobs externalities. A spatial model quantifies the role of fundamentals, industry trends, and Jacobs externalities in shaping industry-city dynamics and isolates a new, dynamic trade-off in the design of place-based policies.

Suggested Citation

  • Heblich, Stephan & Nagy, Dávid Krisztián & Trew, Alex & Zylberberg, Yanos, 2025. "The Death and Life of Great British Cities," CEPR Discussion Papers 20420, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:20420
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    File URL: https://cepr.org/publications/DP20420
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    Keywords

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    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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