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The effect of information and communication technologies on urban structure

Author

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  • Ioannides, Yannis M.
  • Overman, Henry G.
  • Rossi-Hansberg, Esteban
  • Schmidheiny, Kurt

Abstract

The geographic concentration of economic activity occurs because transport costs for goods, people and ideas give individuals and organisations incentives to locate close to each other. Historically, all of these costs have been falling. Such changes could lead us to predict the death of distance. This paper is concerned with one aspect of this prediction: the impact that less costly communication and transmission of information might have on cities and the urban structure. We develop a model which suggests that improvements in ICT will increase the dispersion of economic activity across cities making city sizes more uniform. We test this prediction using cross country data and find empirical support for this conclusion.

Suggested Citation

  • Ioannides, Yannis M. & Overman, Henry G. & Rossi-Hansberg, Esteban & Schmidheiny, Kurt, 2007. "The effect of information and communication technologies on urban structure," LSE Research Online Documents on Economics 19700, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:19700
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    References listed on IDEAS

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    Cited by:

    1. Lewis Dijkstra & Enrique Garcilazo & Philip McCann, 2013. "The Economic Performance of European Cities and City Regions: Myths and Realities," European Planning Studies, Taylor & Francis Journals, vol. 21(3), pages 334-354, March.
    2. Efthymia Kyriakopoulou & Anastasios Xepapadeas, "undated". "Environmental Policy, Spatial Spillovers and the Emergence of Economic Agglomerations," DEOS Working Papers 1017, Athens University of Economics and Business.
    3. ., 2014. "Urban economic performance," Chapters,in: Urban Economics and Urban Policy, chapter 2, pages 11-53 Edward Elgar Publishing.
    4. ., 2014. "Introduction," Chapters,in: Urban Economics and Urban Policy, chapter 1, pages 1-8 Edward Elgar Publishing.
    5. Suzanne Kok & Bas ter Weel, 2014. "Cities, Tasks, And Skills," Journal of Regional Science, Wiley Blackwell, vol. 54(5), pages 856-892, November.
    6. Emmanouil Tranos & Yannis Ioannides, 2015. "Ubiquitous digital technologies and spatial structure: a preliminary analysis," ERSA conference papers ersa15p1329, European Regional Science Association.
    7. Francois, Joseph & Manchin, Miriam, 2013. "Institutions, Infrastructure, and Trade," World Development, Elsevier, vol. 46(C), pages 165-175.
    8. Konstantin Büchel und Maximilian von Ehrlich, 2016. "Cities and the Structure of Social Interactions: Evidence from Mobile Phone Data," Diskussionsschriften dp1608, Universitaet Bern, Departement Volkswirtschaft.
    9. Suzanne Kok, 2013. "Returns to Communication in Specialised and Diversified US Cities," CPB Discussion Paper 236, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Bertschek, Irene & Briglauer, Wolfgang & Hüschelrath, Kai & Krämer, Jan & Frübing, Stefan & Kesler, Reinhold & Saam, Marianne, 2016. "Metastudie zum Fachdialog Ordnungsrahmen für die Digitale Wirtschaft: Im Auftrag des Bundesministeriums für Wirtschaft und Energie (BMWi)," ZEW Expertises, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 147040.
    11. David Cuberes, 2013. "Are Internet and Face-to-Face Contacts Complements or Substitutes? Evidence from Internet Traffic between Cities," Working Papers 2013010, The University of Sheffield, Department of Economics.
    12. Ekaterina Turkina & Ari Van Assche & Raja Kali, 2016. "Network Structure and Industrial Clustering Dynamics in the Aerospace Industry," CIRANO Working Papers 2016s-14, CIRANO.
    13. Ibragimov, Marat & Ibragimov, Rustam & Kattuman, Paul, 2013. "Emerging markets and heavy tails," Journal of Banking & Finance, Elsevier, vol. 37(7), pages 2546-2559.
    14. Ioannides, Yannis & Skouras, Spyros, 2013. "US city size distribution: Robustly Pareto, but only in the tail," Journal of Urban Economics, Elsevier, vol. 73(1), pages 18-29.
    15. Sebastien TERRA, 2009. "Zipf's Law for Cities: On a New Testing Procedure," Working Papers 200920, CERDI.
    16. Antonio Accetturo & Alberto Dalmazzo & Guido Blasio, 2014. "Skill Polarization In Local Labor Markets Under Share-Altering Technical Change," Journal of Regional Science, Wiley Blackwell, vol. 54(2), pages 249-272, March.
    17. repec:dau:papers:123456789/6913 is not listed on IDEAS
    18. Theodore Tsekeris & Klimis Vogiatzoglou, 2014. "Public infrastructure investments and regional specialization: empirical evidence from Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(3), pages 265-289, August.
    19. 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.

    More about this item

    Keywords

    ICT; urban structure; cross country data;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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