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Avent, Glaeser and Yggls go urban

Cities are really important, as engines of the broad economy via industrial clustering, as enablers of efficiency-enhancing specialization and trade, as sources of customers to whom each of us might sell services. Contrary to many predictions, technological change seems to be making human density more rather than less important to prosperity in the developed world. Commerce intermediated at a distance via material goods has become the province of cheap workers in distant lands, and will very soon be delegated to robots. The value of human work is increasingly in collaborative information production and direct personal services, all of which benefit from the proximity of diverse multitudes.

-- and Avent, Glaeser and Yglesias

Given the political obeisance still compelled in the United States by "market outcomes", it is a common trick to claim that outcomes one would prefer are the outcomes that would occur if only institutions and property rights were redefined "appropriately".

I am paying for proximity to my prosperous city's opportunities and amenities, but that is not all. I am also paying for the fact that not only my home, but my neighbor's home, is being put to a use that pleases me and to which I would consent. I am paying for the fact that my neighbors themselves are the kind of people I would be pleased to live next door to. I'm paying for the fact that, as parents, the people whom I am moving in with send well-raised children to the local public school and devote some fraction of their attention to the management of that school. I'm paying for the fact that the streets, the architecture, the trees and public parks, are arranged in a way that pleases me. These are all reasons why, if I had the kind of money I do not have, I might pay up to live in a "nice neighborhood" located near the heart of a thriving city.

-- Waldman ( Interfluidity )

The quality of your schools, the relationship you have with the police, your ability to move freely and transport yourself, how you'll be represented democratically, the primary means through which you'll transfer wealth across generations (if you are a homeowner) and more are all in play even before you get to the economic efficiency, public sphere and social/health arguments about what housing brings.

-- rortybomb

The lack of subsidization for the monumental positive externalities, yet creation of
Positional/Context/Prestige externalities lacks serious analytical and investigative journalism.

-- Richard H Serlin 1, 2.


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