How Should Suburbs Help Their Central Cities? Growth- and Welfare-Enhancing Intrametropolitan Fiscal Distributions

Bibliographic Data

ID9775251
AuthorsAndrew F Haughwout (Federal Reserve Bank of New York's Microeconomic and Regional Studies group, corresponding author), Robert P Inman (Wharton School of the University of Pennsylvania)
Year2009
Volume626
Issue1
Pages39-52
Publication date2009-11-01
Open AccessYes
TypeARTICLE
VenueThe Annals of the American Academy of Political and Social Science (JOURNAL)
Journal identifiersISSN: 0002-7162 • E-ISSN: 1552-3349
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/0002716209343556
OpenAlexW2124219572
LanguageEN
References cited17

Cities are the location of the great majority of economic activity in the United States and produce a disproportionate share of output. It is thus critical for the economy’s long-term growth that cities operate efficiently. In this article, the authors review the basic determinants of output growth, with a focus on productivity growth in cities. The authors then explore the effects of a particular distortion in politically fragmented metropolitan areas. After documenting the interdependence of the suburbs and central city of a metropolitan area, the authors develop a model that embodies many of the empirically verified aspects, including agglomeration economies and public goods. After calibrating the model to outcomes for Philadelphia, the authors use it to simulate various policy changes. The authors conclude that, under the model, some kinds of fiscal redistributions can provide benefits in both cities and suburbs

Central city · Economic geography · Economic growth · Economics · Economies of agglomeration · Geography · Market economy · Metropolitan area · Productivity · Welfare · Fiscal Policy and Economic Growth · Regional Economics and Spatial Analysis · Spatial and Panel Data Analysis

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