Urban Growth Shadows

48 Pages Posted: 21 Nov 2019

See all articles by David Cuberes

David Cuberes

University of Sheffield

Klaus Desmet

Southern Methodist University (SMU); Centre for Economic Policy Research (CEPR)

Jordan Rappaport

Federal Reserve Bank of Kansas City

Date Written: September 28, 2019

Abstract

Does a location's growth benefit or suffer from being geographically close to large economic centers? Spatial proximity may lead to competition and hurt growth, but it may also generate positive spillovers and enhance growth. Using data on U.S. counties and metro areas for the period 1840-2017, we document this tradeoff between urban shadows and urban spillovers. Proximity to large urban centers was negatively associated with growth between 1840 and 1920, and positively associated with growth after 1920. Using a two-city spatial equilibrium model with intra-city and inter-city commuting, we show that the secular evolution of commuting costs can account for this and other observed patterns in the data.

Keywords: urban shadows, agglomeration economies, spatial economics, urban systems, city growth, United States, 1840-2017

JEL Classification: R12, N93

Suggested Citation

Cuberes, David and Desmet, Klaus and Rappaport, Jordan, Urban Growth Shadows (September 28, 2019). Available at SSRN: https://ssrn.com/abstract=3490261 or http://dx.doi.org/10.2139/ssrn.3490261

David Cuberes (Contact Author)

University of Sheffield ( email )

9 Mappin Street
Sheffield, S1 4DT
UNITED KINGDOM

HOME PAGE: http://merlin.fae.ua.es/cuberes/

Klaus Desmet

Southern Methodist University (SMU) ( email )

6212 Bishop Blvd.
Dallas, TX 75275
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Jordan Rappaport

Federal Reserve Bank of Kansas City ( email )

1 Memorial Dr.
Kansas City, MO 64198
United States
816-881-2018 (Phone)
816-881-2199 (Fax)

HOME PAGE: http://www.kansascityfed.org/speechbio/rappaport.cfm

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