March 4th, 2014
by Jeffrey Brinkman, Federal Reserve Bank of Philadelphia
The policies that cities adopt regarding such things as taxes, transportation infrastructure investment, zoning, schools, and police have important and often unpredictable effects on where businesses locate and individuals decide to live and work. In turn, these location decisions have real consequences for cities’ general welfare and economic health. So to fully understand the long-term effects of their policies, cities must consider the complex ways by which firms, residents, and workers go about choosing where to locate.