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"Abstract We quantify the amount of spatial misallocation of labor across US cities and its aggregate costs. Misallocation arises because high productivity cit
by MaysonL 9y ago
"Abstract
We quantify the amount of spatial misallocation of labor across US cities and its aggregate costs. Misallocation arises because high productivity cities like New York and the San Francisco Bay Area have adopted stringent re- strictions to new housing supply, effectively limiting the number of workers who have access to such high productivity. Using a spatial equilibrium model and data from 220 metropolitan areas we find that these constraints lowered aggregate US growth by more than 50% from 1964 to 2009."
- pishpash 9y agoWhy is New York or the San Francisco Bay Area inherently high-productivity?
- stevehawk 9y agoProbably based on wealth, as it's the indication of productivity in most situations (silicon valley / stock exchanges and related financial services)
- Nokinside 9y agoUrbanization causes agglomeration benefits. Larger cities with high-tech industry get even more productivity increases. New York (finance and business center) and Bay area (Silicon Valley) had a good start before others and started collecting people and companies around the country.