Effect of Information and Communication Technologies on Urban Structure

40 Pages Posted: 6 Jul 2007

See all articles by Yannis M. Ioannides

Yannis M. Ioannides

Tufts University

Henry G. Overman

London School of Economics (LSE) - Department of Geography and Environment; Centre for Economic Policy Research (CEPR)

Esteban Rossi-Hansberg

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER)

Kurt Schmidheiny

Universität Basel

Date Written: July 2007

Abstract

Two innovations in the last century have changed dramatically the cost of communicating and transmitting information: The first is the widespread adoption of telephony; the second is the internet. We study the implications of these changes in ICT for urban structure. We find robust evidence that increases in the number of telephone lines per capita lead to a more concentrated distribution of city sizes and so correspondingly to more dispersion in the distribution of economic activity in space. The evidence on internet usage is more speculative, although it goes in the same direction. This empirical result is rationalized in a theoretical model.

JEL Classification: R0, R1

Suggested Citation

Ioannides, Yannis M. and Overman, Henry G. and Rossi-Hansberg, Esteban A. and Schmidheiny, Kurt, Effect of Information and Communication Technologies on Urban Structure (July 2007). CESifo Working Paper No. 2049, Available at SSRN: https://ssrn.com/abstract=998769 or http://dx.doi.org/10.2139/ssrn.998769

Yannis M. Ioannides

Tufts University ( email )

177 College Avenue
Medford, MA 02155
United States
6176273294 (Phone)
6176273917 (Fax)

HOME PAGE: http://https://sites.tufts.edu/yioannides/

Henry G. Overman

London School of Economics (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom
+44 20 7955 6581 (Phone)
+44 20 7955 7412 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Esteban A. Rossi-Hansberg

University of Chicago - Department of Economics

1126 East 59th Street
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Kurt Schmidheiny (Contact Author)

Universität Basel ( email )

Wirtschaftswissenschaftliche Fakultät
Peter Merian-Weg 6
Basel, CH-4002
Switzerland

HOME PAGE: http://wwz.unibas.ch/schmidheiny/

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