Urban form and agglomeration economies – the impact of “edge cities”

Last week, I took a look at the contribution of agglomeration to Auckland’s recent economic growth. Based on observed changes to employment density over the period, plus agglomeration elasticities calculated by David Maré and Daniel Graham, I estimated that 11-12% of Auckland’s recent productivity growth was due to increased urban scale and density.…
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The two-sided density dividend: Agglomeration economies in *consumption*

Why are people – both in NZ and around the world – increasingly choosing to live in cities? The answer usually advanced in response to this question, at least from an economic perspective, is “agglomeration economies”. In this post I want to unpack a few things about agglomeration economies, before discussing why I think our current understanding places too much focus on production as opposed to consumption.…
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Flashback Saturday: Better cities mean a wealthier New Zealand

Most Saturdays we dig into the archives. This post by Peter was originally published in September 2014. Last week I took a look at whether government policy to support regional economies could divert growth away from Auckland. Based on the historical evidence, the answer seems to be no – people want to live in Auckland and start businesses here, and it’s senseless to try and stop that.…
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Is CRL still value for money?

It’s said you shouldn’t respond to every stupid thing you see on the internet but sometimes it’s too hard to resist and that’s the case with an opinion piece published by Newsroom yesterday about the City Rail Link. The piece was written by University of Auckland economics Professor Tim Hazeldine suggesting we should stop building the CRL.…
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