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Cities, regions and the decline of transport costs

Glaeser, Edward L. / Kohlhase, Janet E.

Abstract. The theoretical framework of urban and regional economics is built on transportation costs for manufactured goods. But over the twentieth century, the costs of moving these goods have declined by over 90% in real terms, and there is little reason to doubt that this decline will continue. Moreover, technological change has eliminated the importance of fixed infrastructure transport (rail and water) that played a critical role in creating natural urban centres. In this article, we document this decline and explore several simple implications of a world where it is essentially free to move goods, but expensive to move people. We find empirical support for these implications.

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Cities, regions and the decline of transport costs

Glaeser, Edward L. / Kohlhase, Janet E.

Abstract. The theoretical framework of urban and regional economics is built on transportation costs for manufactured goods. But over the twentieth century, the costs of moving these goods have declined by over 90% in real terms, and there is little reason to doubt that this decline will continue. Moreover, technological change has eliminated the importance of fixed infrastructure transport (rail and water) that played a critical role in creating natural urban centres. In this article, we document this decline and explore several simple implications of a world where it is essentially free to move goods, but expensive to move people. We find empirical support for these implications.

Cities, regions and the decline of transport costs

Glaeser, Edward L. / Kohlhase, Janet E.

Abstract. The theoretical framework of urban and regional economics is built on transportation costs for manufactured goods. But over the twentieth century, the costs of moving these goods have declined by over 90% in real terms, and there is little reason to doubt that this decline will continue. Moreover, technological change has eliminated the importance of fixed infrastructure transport (rail and water) that played a critical role in creating natural urban centres. In this article, we document this decline and explore several simple implications of a world where it is essentially free to move goods, but expensive to move people. We find empirical support for these implications.

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Document information

Title:

Cities, regions and the decline of transport costs

Contributors:

Glaeser, Edward L. (author) / Kohlhase, Janet E. (author)

Published in:

Papers in Regional Science ; 83

Publication date:

2003

ISSN:

DOI:

https://doi.org/10.1007/s10110-003-0183-x

Type of media:

Article (Journal)

Type of material:

Print

Language:

English

Keywords:

Regionalökonomik , Regionalforschung , Theorie , Regionalwissenschaft

Classification:

BKL: 74.12 Stadtgeographie, Siedlungsgeographie

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