Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10480008 | Journal of Urban Economics | 2005 | 32 Pages |
Abstract
We provide a framework and evidence to confront two contradictory yet common assertions: (1) new technology such as the Internet favors businesses in urban areas and (2) the Internet reduces the importance of distance for economic activity. Controlling for other factors, we show that participation in the Internet is more likely in rural areas than in urban areas. This is particularly true for technologies that involve communication across establishments. Nevertheless, talk of the dissolution of cities is premature. Frontier Internet technologies for communication within an establishment appear more often at establishments in urban areas, even with industry controls.
Related Topics
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Economics and Econometrics
Authors
Chris Forman, Avi Goldfarb, Shane Greenstein,