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How Close Is Close? The Spatial Reach of Agglomeration Economies

[Symposium: Productivity Advantages of Cities]

By Stuart S. Rosenthal and William C. Strange

Journal of Economic Perspectives, Summer 2020

This paper considers the attenuation of agglomeration economies. Put another way: how close is close? The paper presents evidence of agglomeration effects operating at various levels of spatial aggregation, including the regional, metropolitan, and neighb...

The Economics of Urban Density

[Symposium: Productivity Advantages of Cities]

By Gilles Duranton and Diego Puga

Journal of Economic Perspectives, Summer 2020

Density boosts productivity and innovation, improves access to goods and services, reduces typical travel distances, encourages energy efficient construction and transport, and allows broader sharing of scarce urban amenities. However, density is also syn...

Tech Clusters

[Symposium: Productivity Advantages of Cities]

By William R. Kerr and Frederic Robert-Nicoud

Journal of Economic Perspectives, Summer 2020

Tech clusters like Silicon Valley play a central role for modern innovation, business competitiveness, and economic performance. This paper reviews what constitutes a tech cluster, how they function internally, and the degree to which policy makers can pu...

Internal Mobility: The Greater Responsiveness of Foreign-Born to Economic Conditions

[Symposium: Productivity Advantages of Cities]

By Gaetano Basso and Giovanni Peri

Journal of Economic Perspectives, Summer 2020

In this article, we review the internal geographic mobility of immigrants and natives in the United States in the recent decades, with a focus on the period since 2000. We confirm a continuing secular decline in mobility already pointed out by the exist...

Tax-Exempt Lobbying: Corporate Philanthropy as a Tool for Political Influence

By Marianne Bertrand, Matilde Bombardini, Raymond Fisman, and Francesco Trebbi

American Economic Review, July 2020

We explore the role of charitable giving as a means of political influence. For philanthropic foundations associated with large US corporations, we present three different identification strategies that consistently point to the use of corporate social re...

History-Bound Reelections

By Hans Gersbach

American Economic Journal: Microeconomics, August 2020

We introduce history-bound reelections. In their simple form, they consist in a "score-replication rule." Under such a rule, an incumbent has to match the highest vote share he or she has obtained in any previous election in order to be reelected. We deve...

Losing Prosociality in the Quest for Talent? Sorting, Selection, and Productivity in the Delivery of Public Services

By Nava Ashraf, Oriana Bandiera, Edward Davenport, and Scott S. Lee

American Economic Review, May 2020

We embed a field experiment in a nationwide recruitment drive for a new health care position in Zambia to test whether career benefits attract talent at the expense of prosocial motivation. In line with common wisdom, offering career opportunities attract...