Support from the U.S. Department of Housing and Urban Development (HUD) through the Doctoral Dissertation Research Grant program is gratefully acknowledged. I would also like to thank Anthony Yezer, David Ribar, Joe Cordes, Anthony Pennington-Cross, and three anonymous referees for their helpful comments and assistance. The opinions and conclusions in this paper are those of the author and do not necessarily represent those of HUD.
CENTRAL CITIES AND SUBURBS: ECONOMIC RIVALS OR ALLIES?*
Version of Record online: 24 NOV 2010
© 2010, Wiley Periodicals, Inc.
Journal of Regional Science
Volume 51, Issue 2, pages 231–252, May 2011
How to Cite
Hollar, M. K. (2011), CENTRAL CITIES AND SUBURBS: ECONOMIC RIVALS OR ALLIES?. Journal of Regional Science, 51: 231–252. doi: 10.1111/j.1467-9787.2010.00701.x
- Issue online: 21 APR 2011
- Version of Record online: 24 NOV 2010
- Received: June 2008; revised: April 2009, December 2009, and April 2010; accepted: May 2010.
ABSTRACT Theoretical models of urban development come to contradictory conclusions regarding the nature of central city–suburb interdependence. Unfortunately, empirical research into this relationship has been hampered by the lack of identifying information due to the endogeneity of factors affecting both central city and suburban growth. This paper resolves the identification problem by constructing an index that measures price shocks to export industries located in either center cities or their suburbs. The results indicate that positive export industry price shocks to one area have a positive spillover effect on the other. Interestingly, the cross-elasticity of suburban employment with respect to center city employment (1.18) significantly exceeds the cross-elasticity of central city employment with respect to suburban employment (0.24).