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The Making of the Modern Metropolis: Evidence from London

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Listed:
  • Stephan Heblich
  • Stephen J. Redding
  • Daniel M. Sturm
Abstract
Using newly-constructed spatially-disaggregated data for London from 1801-1921, we show that the invention of the steam railway led to the first large-scale separation of workplace and residence. We show that a class of quantitative urban models is remarkably successful in explaining this reorganization of economic activity. We structurally estimate one of the models within this class and find substantial agglomeration forces in both production and residence. In counterfactuals, we find that removing the entire railway network reduces the population and the value of land and buildings in London by up to 51.5 and 53.3 percent respectively, and decreases net commuting into the historical center of London by more than 300,000 workers.

Suggested Citation

  • Stephan Heblich & Stephen J. Redding & Daniel M. Sturm, 2018. "The Making of the Modern Metropolis: Evidence from London," NBER Working Papers 25047, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:25047
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    More about this item

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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