Institutional Affiliation: University of California at Berkeley
NBER Working Papers and Publications
|October 2019||Cities in the Developing World|
with Gharad Bryan, Edward Glaeser: w26390
The fast and often chaotic urbanization of the developing world generates both economic opportunity and challenges, like contagious disease and congestion, because proximity increases both positive and negative externalities. In this paper, we review the expanding body of economic research on developing world cities. One strand of this literature emphasizes the economic benefits of urban connection, typically finding that agglomeration benefits are at least as high in poor countries as they are in rich countries. Yet there remains an ongoing debate about whether slums provide a path to prosperity or an economic dead end. A second strand analyzes the negative externalities associated with urban density, and the challenges of building and maintaining infrastructure to moderate those harms. R...