NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Economics of Place-Making Policies

Edward L. Glaeser, Joshua D. Gottlieb

NBER Working Paper No. 14373
Issued in October 2008
NBER Program(s):   PE

Should the national government undertake policies aimed at strengthening the economies of particular localities or regions? Agglomeration economies and human capital spillovers suggest that such policies could enhance welfare. However, the mere existence of agglomeration externalities does not indicate which places should be subsidized. Without a better understanding of nonlinearities in these externalities, any government spatial policy is as likely to reduce as to increase welfare. Transportation spending has historically done much to make or break particular places, but current transportation spending subsidizes low-income, low-density places where agglomeration effects are likely to be weakest. Most large-scale place-oriented policies have had little discernable impact. Some targeted policies such as Empowerment Zones seem to have an effect but are expensive relative to their achievements. The greatest promise for a national place-based policy lies in impeding the tendency of highly productive areas to restrict their own growth through restrictions on land use.

download in pdf format
   (533 K)

email paper

This paper is available as PDF (533 K) or via email.

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w14373

Published: Edward L. Glaeser & Joshua D. Gottlieb, 2008. "The Economics of Place-Making Policies," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 155-253.

Users who downloaded this paper also downloaded these:
Glaeser and Gottlieb w14806 The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States
Glaeser w13696 The Economics Approach to Cities
Glaeser and Resseger w15103 The Complementarity between Cities and Skills
Busso, Gregory, and Kline w16096 Assessing the Incidence and Efficiency of a Prominent Place Based Policy
Gruber, Milligan, and Wise w14647 Social Security Programs and Retirement Around the World: The Relationship to Youth Employment, Introduction and Summary
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us