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Economies Of Agglomeration
One of the major subfields of urban economics, economies of agglomeration (or agglomeration effects), explains, in broad terms, how urban agglomeration occurs in locations where cost savings can naturally arise. This term is most often discussed in terms of economic firm productivity. However, agglomeration effects also explain some social phenomena, such as large proportions of the population being clustered in cities and major urban centers. Similar to economies of scale, the costs and benefits of agglomerating increase the larger the agglomerated urban cluster becomes. Several prominent examples of where agglomeration has brought together firms of a specific industry are: Silicon Valley and Los Angeles being hubs of technology and entertainment, respectively, in California, United States along with London, United Kingdom, being a hub of finance. Economies of agglomeration have some advantages. As more firms in related fields of business cluster together, their production ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Urban Economics
Urban economics is broadly the economic study of urban areas; as such, it involves using the tools of economics to analyze urban issues such as crime, education, public transit, housing, and local government finance. More specifically, it is a branch of microeconomics that studies the urban spatial structure and the location of households and firms . Historically, much like economics generally, urban economics was influenced by multiple schools of thought, including original institutional economics and Marxist economics. These heterodox economic currents continue to be used in contemporary political-economic analyses of cities. But, most urban economics today is neoclassical in orientation and centred largely around urban experiences in the Global North. This dominant urban economics also influences mainstream media like ''The Economist.'' Today, much urban economic analysis relies on a particular model of urban spatial structure, the monocentric city model pioneered in the 1960s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Federal Reserve Bank Of Richmond
The Federal Reserve Bank of Richmond is the headquarters of the Fifth District of the Federal Reserve located in Richmond, Virginia. It covers the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia excluding the Northern Panhandle of West Virginia, Northern Panhandle. Branch offices are located in Baltimore, Maryland and Charlotte, North Carolina. Thomas Barkin, Thomas I. Barkin became president of the Richmond Fed following the retirement of Jeffrey M. Lacker in April 2017. The previous president, J. Alfred Broaddus, retired in 2004. History and Building The Federal Reserve Bank of Richmond has had three locations in Downtown Richmond, Virginia. When it opened in 1914, it was located near the federal courts. From 1919 to 1921, a new building for the Federal Reserve was constructed at 100 North Ninth Street. The Fed offices existed here from 1921 until 1978, when they moved to their current location. The old 1921 Fed building is n ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economies Of Density
In microeconomics, economies of density are cost savings resulting from spatial proximity of suppliers or providers. Typically higher population densities allow synergies in service provision leading to lower unit costs. If large economies of density exist there is an incentive for firms to concentrate and agglomerate. Typical examples are found in logistic systems where the distribution or collection of goods is needed, such as solid waste management. Delivering, for instance, mail in an area with many postboxes results in overall cost savings and thus lower delivery costs. Different network infrastructures such as electricity or gas networks show as well economies of density. Economies of density are not to be confused with economies of scale where unit costs are not linked to spatial properties. See also * Economies of scale * Economies of scope * Network effects * Economies of agglomeration One of the major subfields of urban economics, economies of agglomeration (o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hotelling's Law
Hotelling's law is an observation in economics that in many markets it is Rationality, rational for producers to make their products as similar as possible. This is also referred to as the principle of minimum differentiation as well as Hotelling's Location model, linear city model. The observation was made by Harold Hotelling (1895–1973) in the article "Stability in Competition" in the ''The Economic Journal, Economic Journal'' in 1929. The opposing phenomenon is product differentiation, which is usually considered to be a business advantage if executed properly. Example Suppose there are two competing shops located along the length of a street diverse running north and south, with customers spread equally along the street. Both shop owners want their shops to be where they will get most market share of customers. If both shops sell the same range of goods at the same prices then the locations of the shops are themselves the 'products'. Each customer will always choose t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cluster Initiative
Cluster development (or cluster initiative or economic clustering) is the economic development of business clusters. The cluster concept has rapidly attracted attention from governments, consultants, and academics since it was first proposed in 1990 by Michael Porter. Clusters One of the most well-known clusters is the California Wine Cluster. It is a mass of interrelated businesses including, but not limited to commercial wineries, independent wine grape growers, suppliers of grape stock, irrigation, and harvesting equipment, barrels and labels, public relations and advertising agencies, and publication firms involved with consumer and trade audiences. Another example is the Italian Leather Fashion Cluster. Like the California Wine Cluster, this also includes an array of interrelated businesses including world-famous brands Ferragamo and Gucci. Several chain industries make up this cluster including leather goods producers (clothing, belts, footwear, handbags), specialized servi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cluster Effect
A business cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters are considered to increase the productivity with which companies can compete, nationally and globally. Accounting is a part of the business cluster. In urban studies, the term agglomeration is used.Porter, M. E. 1998Clusters and the New Economics of Competition ''Harvard Business Review'', Nov/Dec98, Vol. 76 Issue 6, p77, Clusters are also important aspects of strategic management. Concept The term business cluster, also known as an industry cluster, competitive cluster, or Porterian cluster, was introduced and popularized by Michael Porter in ''The Competitive Advantage of Nations'' (1990). The importance of economic geography, or more correctly geographical economics, was also brought to attention by Paul Krugman in ''Geography and Trade'' (1991). Cluster development relies on the underlying concepts established by Alfred Marsha ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Knowledge Spillover
Knowledge spillover is an exchange of ideas among individuals.Carlino, Gerald A. (2001) Business Review Knowledge Spillovers: Cities' Role in the New Economy.'' Q4 2001. Knowledge spillover is usually replaced by terminations of technology spillover, R&D spillover and/or spillover (economics) when the concept is specific to technology management and innovation economics. In knowledge management economics, knowledge spillovers are non-rival knowledge market costs incurred by a party not agreeing to assume the costs that has a spillover effect of stimulating technological improvements in a neighbor through one's own innovation. Such innovations often come from specialization within an industry. A recent, general example of a knowledge spillover could be the collective growth associated with the research and development of online social networking tools like Facebook, YouTube YouTube is an American social media and online video sharing platform owned by Google. YouT ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Localization And Urbanization Economies
Localization and Urbanization Economies are two types of external economies of scale, or agglomeration economies. External economies of scale result from an increase in the productivity of an entire industry, region, or economy due to factors outside of an individual company. There are three sources of external economies of scale: input sharing, labor market pooling, and knowledge spillovers (Marshall, 1920). Localization economies occur when an increase in the size of an industry in a city leads to an increase in productivity of a particular activity. Alfred Marshall (1920) introduced the idea that the localization of industry can increase productivity in his book Principles of Economics. The highly concentrated high tech industry in Silicon Valley exemplifies industrial localization. Although the cost of labor and land in Silicon Valley is very high, high tech firms continue to locate there because of the added benefit they receive from their proximity to a high-skilled labor po ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Yangtze Delta
The Yangtze Delta or Yangtze River Delta (YRD), once known as the Shanghai Economic Zone, is a megalopolis generally comprising the Wu Chinese, Wu-speaking areas of Shanghai, southern Jiangsu, northern Zhejiang, southern Anhui. The area lies in the heart of the Jiangnan region (literally, "south of the Yangtze"), where the Yangtze River, Yangtze drains into the East China Sea. Historically the fertile delta fed much of China’s population, and cities and commerce flourished. Today, it is one of China’s most important metropolitan areas and is home to China’s financial center, as well as a tourist destination and hub for manufacture ranging from textile to automaking. In 2024, the Yangtze Delta had a GDP of approximately US$4.7 trillion, about the same size as Germany. The urban buildup in the area has given rise to what may be the largest Megalopolis, concentration of adjacent metropolitan areas in the world. It covers and is home to over 240 million people. With abou ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Henry George Theorem
The Henry George theorem states that under certain conditions, aggregate spending by government on public goods will increase aggregate rent based on land value (land rent) more than that amount, with the benefit of the last marginal investment equaling its cost. The theory is named for 19th century U.S. political economist and activist Henry George. Theory This general relationship, first noted by the French physiocrats in the 18th century, is one basis for advocating the collection of a tax based on land rents to help defray the cost of public investment that helps create land values. Henry George popularized this method of raising public revenue in his works (especially in ''Progress and Poverty''), which launched the 'single tax' movement. In 1977, Joseph Stiglitz showed that under certain conditions, beneficial investments in public goods will increase aggregate land rents by at least as much as the investments' cost. This proposition was dubbed the "Henry George theo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rent-seeking
Rent-seeking is the act of growing one's existing wealth by manipulating the social or political environment without creating new wealth. Rent-seeking activities have negative effects on the rest of society. They result in reduced economic efficiency through misallocation of resources, stifled competition, reduced wealth creation, lost government revenue, heightened income inequality, heightened debt levels, risk of growing corruption and cronyism, decreased public trust in institutions, and potential national decline. Successful capture of regulatory agencies (if any) to gain a coercive monopoly can result in advantages for rent-seekers in a market while imposing disadvantages on their uncorrupt competitors. This is one of many possible forms of rent-seeking behavior. Theory The term "rent", in the narrow sense of land rent, was coined by the British 19th-century economist David Ricardo, but rent-seeking only became the subject of durable interest among economists an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
