Technology and the Life Cycle of Cities

23 Pages Posted: 31 Jul 2007

See all articles by Elise S. Brezis

Elise S. Brezis

Bar-Ilan University - Department of Economics; National Bureau of Economic Research (NBER)

Paul R. Krugman

Princeton University - Woodrow Wilson School of Public and International Affairs; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Date Written: December 1993

Abstract

During times of major technological change leading cities are often overtaken by upstart metropolitan areas. Such upheavals may be explained if the advantage of established urban centers rests on localized learning-by-doing. When a new technology for which this accumulated experience is irrelevant is introduced, older centers prefer to stay with a technology in which they are more efficient. New centers, however, turn to the new technology, and are competitive despite the raw state of that technology because of their lower land rents and wages. Over time, as the new technology matures, the established cities are overtaken.

Suggested Citation

Brezis, Elise S. and Krugman, Paul R., Technology and the Life Cycle of Cities (December 1993). NBER Working Paper No. w4561. Available at SSRN: https://ssrn.com/abstract=420305

Elise S. Brezis (Contact Author)

Bar-Ilan University - Department of Economics ( email )

Ramat-Gan, 52900
Israel
972-3-5318946 (Phone)
972-3-5353186 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Paul R. Krugman

Princeton University - Woodrow Wilson School of Public and International Affairs ( email )

Princeton University
Princeton, NJ 08544-1021
United States
609-258-4570 (Phone)
609-258-2809 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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