By Michael Storper
Why do a little towns develop economically whereas others decline? Why perform a little express sustained monetary functionality whereas others cycle up and down? In Keys to the City, Michael Storper, one of many world's best monetary geographers, appears to be like at why we must always give some thought to financial improvement concerns inside of a nearby context--at the extent of the city-region--and why urban economies enhance unequally. Storper identifies 4 contexts that form city fiscal improvement: monetary, institutional, innovational and interactional, and political. The publication explores how those contexts function and the way they have interaction, resulting in developmental good fortune in a few areas and failure in others. Demonstrating that the worldwide economic system is more and more pushed through its significant towns, the keys to the town are the keys to international improvement. In his end, Storper specifies 8 principles of financial improvement specified at policymakers. Keys to the City explains why economists, sociologists, and political scientists may still take geography seriously.
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Extra info for Keys to the City: How Economics, Institutions, Social Interaction, and Politics Shape Development
1, from Kemeny and Storper (2012), shows scatterplots of the relationship between population and nominal and real median household income in 1980 and 2000 for a consistent set of 244 metropolitan areas. In the left column, we observe the expected upward-sloping relationship between nominal income and population: “raw” wages are higher in large cities. In contrast to Edward Glaeser and David Maré’s (2001) finding with 37 cities in 1990, however, this figure depicts that in 1980 as in 2000, the median household in large cities earns considerably more, even Workshops of the World Economy • 19 after accounting for housing costs, than the median household in smaller cities.
Product cycle models propose stylized descriptions of this sequence (Norton and Rees 1979). In them, technological maturity reverses the forces that lead to agglomeration, enabling increases in the scale and scope of production units, and lowering the volume and unit costs of intermediate trade; this, in turn, allows for deagglomeration. Product cycle models are simplified, stylized descriptions of this dynamic. Scale and scope do not always move in one direction, from small to large volumes. Technologies and market structures also change in different ways, sometimes involving more product variety and sometimes less.
This is not to say that the geography of home markets is unimportant. But NEG has probably missed the boat on the role of the home market. It devotes too much attention to scale/variety interactions in manufacturing and distribution, and not enough to the diversified service sector that provides the nontradable activity sector to city economies in developed countries today. Personal services, construction, and other labor-intensive activities have demand structures that are highly elastic in relation to the income generated in the tradable part of the contemporary urban 40 • Chapter 3 economy.