TY - JOUR AU - Glaeser, Edward L AU - Ponzetto, Giacomo A.M. TI - Did the Death of Distance Hurt Detroit and Help New York? JF - National Bureau of Economic Research Working Paper Series VL - No. 13710 PY - 2007 Y2 - December 2007 DO - 10.3386/w13710 UR - http://www.nber.org/papers/w13710 L1 - http://www.nber.org/papers/w13710.pdf N1 - Author contact info: Edward L. Glaeser Department of Economics 315A Littauer Center Harvard University Cambridge, MA 02138 Tel: 617/495-0575 Fax: 617/495-7730 E-Mail: eglaeser@harvard.edu Giacomo A. M. Ponzetto CREI, Universitat Pompeu Fabra, IPEG and Barcelona GSE C/ Ramon Trias Fargas, 25-27 08005 Barcelona Spain E-Mail: gponzetto@crei.cat M1 - published as Edward L. Glaeser, Giacomo A. M. Ponzetto. "Did the Death of Distance Hurt Detroit and Help New York?," in Edward L. Glaeser, editor, "Agglomeration Economics" University of Chicago Press (2010) AB - Urban proximity can reduce the costs of shipping goods and speed the flow of ideas. Improvements in communication technology might erode these advantages and allow people and firms to decentralize. However, improvements in transportation and communication technology can also increase the returns to new ideas, by allowing those ideas to be used throughout the world. This paper presents a model that illustrates these two rival effects that technological progress can have on cities. We then present some evidence suggesting that the model can help us to understand why the past thirty-five years have been kind to idea-producing places, like New York and Boston, and devastating to goods-producing cities, like Cleveland and Detroit. ER -