Efficient Urbanization (Working Paper)

Economic Performance and the Shape of the Metropolis

Author(s): Cervero, Robert
Publication Date: December 2000

40 pages; Inventory ID WP00RC1; English

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Abstract

The influences of urban form and transportation infrastructure on economic performance show up in several contemporary policy debates, notably “sprawl versus compact city” and in the developing world, the future of mega-cities. This paper probes these relationships using two scales of analysis. At the macro-scale, an econometric analysis using data across 47 U.S. metropolitan areas reveals that employment densities and urban primacy are positively associated with worker productivity, suggesting the presence of agglomeration economies. Congested freeways are shown to be a consequence of strong economic performance. An intra-metropolitan analysis using data on sub-districts of the San Francisco Bay Area generally reinforce the findings of the macro-scale analysis. In the Bay Area, labor productivity appears to increase with size of labor-marketshed and high accessibility between residences and firms. Higher employment density and well-functioning infrastructure also positively contribute to economic performance.