Density Can Drive Prosperity

David Roberts at Grist argues that density doesn't just have those hippie benefits like improving the environment or creating communities - it also can create engines of prosperity and economic growth.

Roberts breaks it down:

"Here's the basic idea: When smart, skilled people start to gather in a place, the process becomes self-perpetuating. More smart, skilled people show up to be near the others. And the more smart, skilled people you get close together, the more you reduce transaction costs and increase "knowledge spillover," which leads to commerce and innovation."

He points to Economics of Agglomeration: Cities, Industrial Location, and Regional Growth by Masahisa Fujita and Jacques-Francois Thisse as evidence.

Full Story: Great places: smart density as part of economic flourishing

Comments

building block set

NEW! Build the world you want to see

Irresistible block set for adults when placed on a coffee table or desk, and great fun for kids.
$25

Prepare for the AICP* Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $245

NEW! Get the "Green Bible"

Understand the complexities of planning at the local level while preparing for the AICP* exam. Find out why this edition is included in the APA's recommended reading list.
$105
Red necktie with map of Boston

Tie one on to celebrate your city!

Choose from over 20 styles imprinted with detailed city or transit maps.
$44.95