Urbanists, test your knowledge of urban economics. Familiar with the concept of agglomeration externality? Finance professor and Bloomberg View writer Noah Smith opines it's a major reason why American cities are not as productive as they should be.
Forget reducing congestion and improving the environment; a new paper makes perhaps the strongest argument yet for investing in public transit based on its ability to agglomerate, or cluster people together, raising wages and productivity.
Though China's cities have been growing exponentially, some argue it isn't urbanizing fast enough. Fearing Latin American-style slums, leaders have restricted migration. They're now being urged to ease controls to maximize agglomeration effects.