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Submitted by dunedingeorge on September 19, 2005
Category: Business
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Econ 350
Urban/Regional Economics
Short Essay
Review of a Journal Article
Journal of Urban Economics, (56) 2004 1-24
Geography and the Internet:
Is the Internet a substitute or a complement for cities?
Todd Sinai and Joel Waldfogel
9th of May 2005
Abstract
This paper has provided with an interesting point to begin analysis. Communications technology has always been of interest to the urban economist. The internet has new significance as a method of commerce and looks set to aid in the further growth of the city or could spell the cities end by replacing a cities role of efficiently supplying goods. Throughout this essay I have sought to explain this paper in lay person’s terms as well as demonstrate the papers place in the economic literature. Also I have used New Zealand example and instances allowing the audience to feel included within the essay.
Introduction
Communications and the future of the City have always been viewed by various academics as substitutes or complements. The invention of the telephone and the popularity of mail order products have all had there effect on the city however the development of the internet as a means of commerce, communications and market place has provided for a focus Sinai and Waldfogel’s latest paper. There paper outlines weather the internet is a complement or a substitute for the modern city.
Outline
There paper includes three methods of reasoning derived from the same data sets. These topics include internet connection from a demand perspective, a measure local orientate sites and racial and distance motives for internet connection.
If the internet is a substitute for the city then;
“When production entails fixed costs and preferences...
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