The Triumph of the City: How our Greatest Invention Makes us Richer, Smarter, Greener, Healthier, and Happier
The Triumph of the City: How our Greatest Invention Makes us Richer, Smarter, Greener, Healthier, and Happier
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DOI:
10.1016/j.soscij.2012.11.003
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发表时间:
2012-12
期刊:
影响因子:
--
通讯作者:
P. Hodges;S. Carson
中科院分区:
文献类型:
--
作者:
P. Hodges;S. Carson
For generations, pundits have predicted the demise of cities. Given decreasing transportation and communication costs, the ease with which social and economic exchanges would be conducted would make urban concentration outdated. In fact, the opposite is true. Rather than becoming more rural and spread out, populations are ever more concentrated, and urban life has come to be seen as desirable as or even healthier than rural locations. So, what is responsible for this unexpected turn of events? It is against this backdrop that Harvard economist, Edward Glaeser, explores the myriad of reasons that international populations have ironically chosen urban lifestyles at the same time that technology and economic exchange have made rural living increasingly more convenient. Individuals only choose to urbanize if the net benefits from city dwelling over time are positive, and we remain in cities only if the discounted net benefits over time are greater than rural living, less the cost of relocation. As Glaeser points out, a considerable part of urban living is economic, and nowhere are the net benefits of urban living more apparent than in the case of externalities. An externality is a cost or benefit that accrues to economic agents not involved in a transaction. The simplest way to think of externalities is spillover effects, and these spillover effects can be either positive or negative. A positive externality occurs when benefits accrue to parties not involved in a transaction, and these positive externalities are important explanations for why individuals in both developed and developing economies urbanize. The reasons come down to the labor market. It is simply more productive to work with or learn from someone alongside you or across the table than digitally connected half a world away. For example, in the developed cities of New York and San Francisco and Tokyo, close proximity with co-workers increases communication, fosters innovation, and increases productivity. Moreover, modern life expectancies and reported levels of happiness are higher in urban locations. Urbanization is associated with greater productivity and education, which is associated with greater living standards, income, and wealth. The urban-rural trade-off also illustrates the economic principle of the law of one price. A market is said to be efficient if it quickly incorporates all relevant information into prices and eliminates risk adjusted arbitrage opportunities; opportunities to risklessly buy at low prices and sell at high prices are random and exhausted in equilibrium. The urban-rural interplay with productivity further illustrates market forces because urban proximity increases the price of living in cities. However, when the price of city living increases, it further marginalizes low income workers, and modern cities have become meccas for both rich and poor.Spillover affects also have detrimental consequences, and negative externalities occur when costs accrue to third parties not involved in a transaction. Two important urban negative externalities are disease and crime. Infectious and communicable diseases increase in developing countries when populations concentrate in densely populated areas, and such diseases in urban areas are higher than in rural areas. Just as populations go through demographic transitions, city populations go through a disease-public infrastructure transition. When urban population growth in developing economies begins to increase, densely populated areas increase the means by which infectious and communicable disease spreads. However, to remain attractive destinations, urban government officials must develop effective means to reduce disease; else urban …