NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Technology and the Life Cycle of Cities

Elise Brezis, Paul Krugman

NBER Working Paper No. 4561
Issued in December 1993
NBER Program(s):   ITI

During times of major technological change leading cities are often overtaken by upstart metropolitan areas. Such upheavals may be explained if the advantage of established urban centers rests on localized learning-by-doing. When a new technology for which this accumulated experience is irrelevant is introduced, older centers prefer to stay with a technology in which they are more efficient. New centers, however, turn to the new technology, and are competitive despite the raw state of that technology because of their lower land rents and wages. Over time, as the new technology matures, the established cities are overtaken.

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Document Object Identifier (DOI): 10.3386/w4561

Published: Journal of Economic Growth, Vol. 2, no. 4 (December 1997), pp. 369-383.

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