Richard J. Arnott, Daniel P. McMillen's A companion to urban economics PDF

By Richard J. Arnott, Daniel P. McMillen

A spouse to city Economics presents a cutting-edge evaluation of this box, speaking its highbrow richness via a various portfolio of authors and themes. detailed in either its rigor and overseas therapy an awesome supplementary textbook in upper-level undergraduate city economics classes, or in master's point classes, delivering scholars with the required starting place to take on extra complex issues in city economics includes contributions from the world’s top city economists

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This amounts to assuming that all firms in New York benefit from all other firms in the city. Whether the firm is nearby or far away makes no difference. 3 for software and carpet manufacturing strongly suggest that, at least for these industries, this is not the case. Instead, the patterns in these figures indicate that firms tend to be drawn to locations where activity in their industry is most concentrated. Although not conclusive by itself, this is consistent with the idea that firms benefit much more from own-industry activity in the immediate area than from activity farther away.

These mechanisms call for different policy prescriptions. In some extreme cases, subsidizing education may even be counterproductive. The fact that the social costs and benefits of education have many dimensions complicates the matter even more. Human capital externalities can be thought of having a positive effect on productivity and wages as well as criminal behavior or even voting outcomes. In what follows, the discussion will be restricted to the effects of human capital externalities on wages and earnings.

S. ROSENTHAL 18 AND W. C. STRANGE spillover depends crucially on physical proximity, as Tom Furlong of Digital Electronics Corporation notes: Physical proximity is important to just about everything we do. I have better relationships with Silicon Valley companies than I have even with my own company . . because I can just get in the car and go see them . . You never work on the same level if you do it by telephone and airplane. It’s very hard to work together long distance. You don’t have a feel for who the people are, they are just a disembodied voice.

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