Technology and the Life Cycle of Cities |
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Authors: | Elise S Brezis Paul R Krugman |
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Institution: | (1) Department of Economics, Bar-Ilan University, Israel;(2) Department of Economics, Massachusetts Institute of Technology, Cambridge, MA 02139, USA |
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Abstract: | During times of major technological change, leadingcities are often overtaken by upstart metropolitan areas. Suchupheavals may be explained if the advantage of established urbancenters rests on localized learning by doing. When a new technologyis introduced, for which this accumulated experience is irrelevant,older centers prefer to stay with a technology in which theyare more efficient. New centers, however, turn to the new technologyand are competitive despite the raw state of that technologybecause of their lower land rents and wages. Over time, as thenew technology matures, the established cities are overtaken. |
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Keywords: | technological changes urban system geographical concentration |
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