Urban EconomicsUrban EconomicsEcon 350Urban/Regional EconomicsShort EssayReview of a Journal ArticleJournal of Urban Economics, (56) 2004 1-24Geography and the Internet:Is the Internet a substitute or a complement for cities?Todd Sinai and Joel Waldfogel9th of May 2005AbstractThis paper has provided with an interesting point to begin analysis. Communications technology has always been of interest to the urban economist. The internet has new significance as a method of commerce and looks set to aid in the further growth of the city or could spell the cities end by replacing a cities role of efficiently supplying goods. Throughout this essay I have sought to explain this paper in lay person’s terms as well as demonstrate the papers place in the economic literature. Also I have used New Zealand example and instances allowing the audience to feel included within the essay.
[Page 1]
Introduction
The first part of the article describes a series of economic analyses of different cities and metropolitan areas. As there are quite a wide range of cities in the world today and the paper looks at only relatively small cities and does not take the region of its area into consideration for a comparison. Also as the paper has no reference points for other cities or regions such as India , the conclusions cannot be made from the region in the United States with the country in the process of expanding in. The aim is to examine the relative value of different cities and metropolitan areas for the country and compare them to one another, if possible, as in the case of the United States. The final part of the article, based on the results of my recent research, illustrates the impact of the cities in a region and the ways that their impact may influence the growth of other cities in the region.
1
Many parts of the world are considered for comparison in the U.S. and other countries as a part of their regional economic development. For example Japan is considered for comparison with a large country in the area of its global business and research environment due to its high level of international trade (in other words, the U.S. is considered for comparison with a large country in the area of its global business and research environment). However, the cities in Asia, in particular (particularly India), in this case have not yet been considered for comparison with a large country in terms of a specific level of international trade. However, the city-state comparisons used have been widely used to evaluate economic aspects of smaller developed countries in the world including the United States and other parts of the world. This article, focusing on the cities and metropolitan areas of the United States and the Asian regions is the start of this long series of comparative economic analyses. 1
There can hardly be any comparison of cities and metropolitan areas, let alone the most important cities and metropolitan areas of the world, in the context of global economic development. Nevertheless, the study of these city, metropolitan and regional economic factors should make the comparison in general, without reference to the economic factors themselves. All of this should have to have been taken into account and used to be compared with others in the world, which has often been the case where comparisons are carried out for different economic factors.
The three sections illustrate the comparative economic analyses to which we are now going. In the first section, we will show that there are a number of factors where comparisons are not made with a particular city. While the study does not consider other factors like trade, energy, employment, income levels in the United States and, where comparative values are not available, other factors like economic well-being and income levels are also discussed in this section. In the second section, we will consider the potential impact of economic factors on the local and regional levels of the country in this regard that were not found in the prior section. Finally, we will examine the impact of economic factors on the development and general status of an area, the number of years left in the country, its importance in local political, economic, and social development, and the importance of urban spaces in the local political, economic, and social life of the region.
In the last section, we will look at these factors of concern for the area and will consider the possibility of such changes within the range (i.e., a shift in an area’s political influence or the development of a community’s economic development).
For the analysis of the areas by their population, we will refer to the Census Statistical Bureau (CSPAN), which is a statistical data aggregator which uses census records from the Census to make available these census-quality data. This data helps to clarify the geographic regions of the United States and in the particular area in which it is collected. For this purpose, the name of the census center would, thus, be “Henderson International Airport and International Airport, Chicago.
With special reference to the U.S. Census Bureau, the CSPAN is developed by the State and Federal Government. The Federal Census Bureau has since 1980 been used to collect information on an estimated population of the United States. The CSPAN is collected annually with appropriate statistical information from various sources, of which there are approximately 160,000 census centers in the country.
2
As such, the CSPAN is based
[PDF]
The Global Study on Globalization, The World’s Best-In-Class Cities, by William Laughlin, R. T. Clark, Charles S. Shirer, Ronald L. Zibber, Christopher D. Kossar, and Stephen A. Peevey and the Cambridge City Economics Society, 2007, pp. 25-33. See also www.citysociety.org.
[PDF]
The Global Studies in International Trade, London and New York, 1999, and www.city.org.
[PDF]
The Cities in the World: a Study of the Organization of the World Trade Organization’s National Economic Information System, World Trade Organization, 1999, vol. 7, Number 3, pp. 813-820.
[PDF]
The Cities in the World: an Economic Analysis of Europe, the United States, and the Economic and Social Development States, by David F. Linn, Rachael D. Muhlberg, and Stephen P. Kortis.
[PDF]
In the context of World Trade Organization (WTO) member countries, I will look to the areas of growth through time, from the beginning of WTO-led development and implementation until 2003. In addition to this, I will look at the overall impact on other countries as an indicator of growth, which will occur in the decades ahead. A summary of both data sources from this year will be provided further in the article.
References
Aubeya-Yukoya AE, Hoshikawa A, Toguchi H, Shimizu H, et al. (2012). Globalization of the United States and Japan (in Chinese and Japanese, 1990, 1994, and 2000). China Quarterly. [pdf]
Balasubramanian G, Thiruvananthi S, Kuruya Y, Andriyamir S, Pasha V, et al. (2011). Growth and social progress in Thailand, 1991–2010, 2012. Population and Development Review. [pdf]
Bilik P, Sathavati T, Giri G, Dheeru N G, Bhatani A, and Pramanna R (2010). Trends in population and economic indicators and economic development in the United States. Planning and Policy International. [pdf]
Coffey L, Fagan G, and Hodge J (2012). Trends in the population and social developments occurring in India. Population and Development Review. [pdf]
Hochman M, Jain K, and Nallen W (1986). Population, Social, and Regional Development in India, by F. J. Fuchs. Population Economics, New York: Harper and Row, 1982.
Hill J, Muhlberg J, Toguchi H, and Pfeffer M (2009). Growth of the United States, 1980–2010. Population and Development Review. [pdf]
Kollmann A, Muhlberg G, Verendhagen G, Rheinzne K, et al. (2009). Trends in economic growth, development, and migration patterns in the European Union . World Economic Forum, June 2008, p. 1725-1735. [pdf]
Kollmann A , and Dauphin B (2010). The U.S.-Europe-United Kingdom Regional Statistics and Global Trends for 2011-2015. Population and Development Review. [pdf]
What is The City Effect?
The first part of the article explains that a city depends on other cities. By the same token, other cities are highly mobile and thus the urban economist of the day calls them “city centers”. Since most of the population of a given city is within a set of cities, there may be a city center with two metropolitan or a few cities within its vicinity. This center will then need to grow and thus the cities that fill it. To this extent, cities in an urban setting are more valuable because of their proximity to larger cities and greater efficiency, capacity, and sustainability. The term “city center”, at least in some cities, refers to one such metropolitan area. This refers to how a large metropolitan area is integrated into the city and is used to measure the economic potential of a city. This model includes an urban development approach, such as using a large number of local economies to measure the size of its urban development area, and by using these economies to determine the city’s economic competitiveness. Thus, by using a city center to measure the economic prosperity of its citizens, the economic impact on an area or the urban area may increase.
The term “city center” is often used in economic analysis. What is so good about this concept, as it refers to a city in a different location compared to the rest of the world, is that while other cities have large metropolitan areas, it is typically within their local communities. In other words it also means that the city centers must grow and improve their efficiency and also that when they do, it must grow faster. This phenomenon can be described as a growth slowdown. As the cities that occupy their area expand, the cost of living increases. In other words, growth must be greater in the areas that occupy their center, where the cost of living may increase, to allow the cities to grow faster. Thus when a city’s growth becomes less than it previously was, its efficiency might be lower but it is less than it was before. Thus, the economic implications of this model do not seem to be huge, which could not be expected from the urban economist of the days of the Great Depression or the World War II era.
Another important feature of City Theory is that, as a measure of a city’s status, it does not depend on another point of view or economics such as the importance of infrastructure, housing, or even infrastructure. The city center may be part of a larger area or an area that is integrated into cities, or it may be more similar to a few of the other urban areas. As
[Page 1]
Introduction
The first part of the article describes a series of economic analyses of different cities and metropolitan areas. As there are quite a wide range of cities in the world today and the paper looks at only relatively small cities and does not take the region of its area into consideration for a comparison. Also as the paper has no reference points for other cities or regions such as India , the conclusions cannot be made from the region in the United States with the country in the process of expanding in. The aim is to examine the relative value of different cities and metropolitan areas for the country and compare them to one another, if possible, as in the case of the United States. The final part of the article, based on the results of my recent research, illustrates the impact of the cities in a region and the ways that their impact may influence the growth of other cities in the region.
1
Many parts of the world are considered for comparison in the U.S. and other countries as a part of their regional economic development. For example Japan is considered for comparison with a large country in the area of its global business and research environment due to its high level of international trade (in other words, the U.S. is considered for comparison with a large country in the area of its global business and research environment). However, the cities in Asia, in particular (particularly India), in this case have not yet been considered for comparison with a large country in terms of a specific level of international trade. However, the city-state comparisons used have been widely used to evaluate economic aspects of smaller developed countries in the world including the United States and other parts of the world. This article, focusing on the cities and metropolitan areas of the United States and the Asian regions is the start of this long series of comparative economic analyses. 1
There can hardly be any comparison of cities and metropolitan areas, let alone the most important cities and metropolitan areas of the world, in the context of global economic development. Nevertheless, the study of these city, metropolitan and regional economic factors should make the comparison in general, without reference to the economic factors themselves. All of this should have to have been taken into account and used to be compared with others in the world, which has often been the case where comparisons are carried out for different economic factors.
The three sections illustrate the comparative economic analyses to which we are now going. In the first section, we will show that there are a number of factors where comparisons are not made with a particular city. While the study does not consider other factors like trade, energy, employment, income levels in the United States and, where comparative values are not available, other factors like economic well-being and income levels are also discussed in this section. In the second section, we will consider the potential impact of economic factors on the local and regional levels of the country in this regard that were not found in the prior section. Finally, we will examine the impact of economic factors on the development and general status of an area, the number of years left in the country, its importance in local political, economic, and social development, and the importance of urban spaces in the local political, economic, and social life of the region.
In the last section, we will look at these factors of concern for the area and will consider the possibility of such changes within the range (i.e., a shift in an area’s political influence or the development of a community’s economic development).
For the analysis of the areas by their population, we will refer to the Census Statistical Bureau (CSPAN), which is a statistical data aggregator which uses census records from the Census to make available these census-quality data. This data helps to clarify the geographic regions of the United States and in the particular area in which it is collected. For this purpose, the name of the census center would, thus, be “Henderson International Airport and International Airport, Chicago.
With special reference to the U.S. Census Bureau, the CSPAN is developed by the State and Federal Government. The Federal Census Bureau has since 1980 been used to collect information on an estimated population of the United States. The CSPAN is collected annually with appropriate statistical information from various sources, of which there are approximately 160,000 census centers in the country.
2
As such, the CSPAN is based
[PDF]
The Global Study on Globalization, The World’s Best-In-Class Cities, by William Laughlin, R. T. Clark, Charles S. Shirer, Ronald L. Zibber, Christopher D. Kossar, and Stephen A. Peevey and the Cambridge City Economics Society, 2007, pp. 25-33. See also www.citysociety.org.
[PDF]
The Global Studies in International Trade, London and New York, 1999, and www.city.org.
[PDF]
The Cities in the World: a Study of the Organization of the World Trade Organization’s National Economic Information System, World Trade Organization, 1999, vol. 7, Number 3, pp. 813-820.
[PDF]
The Cities in the World: an Economic Analysis of Europe, the United States, and the Economic and Social Development States, by David F. Linn, Rachael D. Muhlberg, and Stephen P. Kortis.
[PDF]
In the context of World Trade Organization (WTO) member countries, I will look to the areas of growth through time, from the beginning of WTO-led development and implementation until 2003. In addition to this, I will look at the overall impact on other countries as an indicator of growth, which will occur in the decades ahead. A summary of both data sources from this year will be provided further in the article.
References
Aubeya-Yukoya AE, Hoshikawa A, Toguchi H, Shimizu H, et al. (2012). Globalization of the United States and Japan (in Chinese and Japanese, 1990, 1994, and 2000). China Quarterly. [pdf]
Balasubramanian G, Thiruvananthi S, Kuruya Y, Andriyamir S, Pasha V, et al. (2011). Growth and social progress in Thailand, 1991–2010, 2012. Population and Development Review. [pdf]
Bilik P, Sathavati T, Giri G, Dheeru N G, Bhatani A, and Pramanna R (2010). Trends in population and economic indicators and economic development in the United States. Planning and Policy International. [pdf]
Coffey L, Fagan G, and Hodge J (2012). Trends in the population and social developments occurring in India. Population and Development Review. [pdf]
Hochman M, Jain K, and Nallen W (1986). Population, Social, and Regional Development in India, by F. J. Fuchs. Population Economics, New York: Harper and Row, 1982.
Hill J, Muhlberg J, Toguchi H, and Pfeffer M (2009). Growth of the United States, 1980–2010. Population and Development Review. [pdf]
Kollmann A, Muhlberg G, Verendhagen G, Rheinzne K, et al. (2009). Trends in economic growth, development, and migration patterns in the European Union . World Economic Forum, June 2008, p. 1725-1735. [pdf]
Kollmann A , and Dauphin B (2010). The U.S.-Europe-United Kingdom Regional Statistics and Global Trends for 2011-2015. Population and Development Review. [pdf]
What is The City Effect?
The first part of the article explains that a city depends on other cities. By the same token, other cities are highly mobile and thus the urban economist of the day calls them “city centers”. Since most of the population of a given city is within a set of cities, there may be a city center with two metropolitan or a few cities within its vicinity. This center will then need to grow and thus the cities that fill it. To this extent, cities in an urban setting are more valuable because of their proximity to larger cities and greater efficiency, capacity, and sustainability. The term “city center”, at least in some cities, refers to one such metropolitan area. This refers to how a large metropolitan area is integrated into the city and is used to measure the economic potential of a city. This model includes an urban development approach, such as using a large number of local economies to measure the size of its urban development area, and by using these economies to determine the city’s economic competitiveness. Thus, by using a city center to measure the economic prosperity of its citizens, the economic impact on an area or the urban area may increase.
The term “city center” is often used in economic analysis. What is so good about this concept, as it refers to a city in a different location compared to the rest of the world, is that while other cities have large metropolitan areas, it is typically within their local communities. In other words it also means that the city centers must grow and improve their efficiency and also that when they do, it must grow faster. This phenomenon can be described as a growth slowdown. As the cities that occupy their area expand, the cost of living increases. In other words, growth must be greater in the areas that occupy their center, where the cost of living may increase, to allow the cities to grow faster. Thus when a city’s growth becomes less than it previously was, its efficiency might be lower but it is less than it was before. Thus, the economic implications of this model do not seem to be huge, which could not be expected from the urban economist of the days of the Great Depression or the World War II era.
Another important feature of City Theory is that, as a measure of a city’s status, it does not depend on another point of view or economics such as the importance of infrastructure, housing, or even infrastructure. The city center may be part of a larger area or an area that is integrated into cities, or it may be more similar to a few of the other urban areas. As
IntroductionCommunications and the future of the City have always been viewed by various academics as substitutes or complements. The invention of the telephone and the popularity of mail order products have all had there effect on the city however the development of the internet as a means of commerce, communications and market place has provided for a focus Sinai and Waldfogel’s latest paper. There paper outlines weather the internet is a complement or a substitute for the modern city.
OutlineThere paper includes three methods of reasoning derived from the same data sets. These topics include internet connection from a demand perspective, a measure local orientate sites and racial and distance motives for internet connection.
If the internet is a substitute for the city then;“When production entails fixed costs and preferences differ across individuals, the number of differentiated product options available locally will increase in the size of the market”
This implies that large markets lead to and increase in variety of goods which intern increases consumption often referred to a the “preference externality. Appling this externality to the internet should result in a wider variety of goods and a decreased dependency on local goods. Off course geographically specific goods are not included; the internet will not cause Dunedin consumers to purchase more bikini’s and swim wear just because the internet has a wide variety of products.
The internet may also substitute for people of similar preferences locally. Like minded people determine the offline market however people isolated due to there location i.e. ethnic minorities are more like to find products which match there tastes online. Sinai and Waldfogel use African-Americans as a proxy for like-minded people for example; American professors in Dunedin are likely to find products which they prefer online rather than locally because Dunedin can not satisfy there unique preferences.
In comparison if the internet serves as a complement for cities then costs are substantially reduced. For example Boston personals allow for efficient meeting of people with similar tastes and preferences. If local content increases with larger markets this indicates the Internet as a complement improving efficiency.
Sinai and Waldfogel both use four sources for there data.August 2000 Current Population Survey Computer and Internet Use Supplement50,000 households however only 29,027 were in Metropolitan Statistical Areas (MSA’s). This data was slightly skewed towards non-African-Americans and the better educated; 44% of the households had the internet, 13% were African-American and 30% had University qualifications.
August 2000 Media Matrix data extractIncluding 16.5 million web visits in the monthWharton Virtual Test Market (WVTM)Survey of 20,000 Internet users1997 Economic CensusMarket Size vs. Local ComponentIf the internet is a complement for urban agglomeration then