Download e-book for iPad: City Economics by Brendan O'Flaherty

By Brendan O'Flaherty

ISBN-10: 0674019180

ISBN-13: 9780674019188

I often hate economics, yet this e-book has particularly offered the data that's effortless to appreciate, and simple to include into determination making.

I strongly suggest it!

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Example text

B. Empirical Evidence Except for the explanation emphasizing knowledge externalities, all of these explanations for why cities are seats of innovation portray the spur to innovation as an urbanization economy, not a localization economy: what matters are the size and density of the city, not the number of people engaged in some narrowly defined activity. Studies that have looked at the growth of cities and industries have generally been supportive of this picture. For instance, one group of scholars (Glaeser et al.

The cost of driving twenty minutes is the benefit you would have received from engaging in the most beneficial of the other activities you could have engaged in. Economists have traditionally identified the cost of the time a person spends driving or traveling by some other mode with the amount of money she could have made in that time. This makes time by far the largest component of the cost of an automobile trip on a country road. 50 in 2000. S. 58, or three to nine times as much as the gas cost.

Being in favor of Pareto improvements is a weak position, one that it would seem only sadists would oppose, and so economists often use this criterion in thinking about policy recommendations. Getting people to stop making trips with negative net benefits would also be a Pareto improvement, since the drivers who would have made those trips would benefit and no one loses. How can a benevolent government induce people to make the right trips—all the trips with positive net benefits and none of the others?

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City Economics by Brendan O'Flaherty


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