Rappaport proposes that an economy is a spatial equilibrium: net flows of residents and employment slowly reach a balance. People may not be able to benefit by moving to a larger city because even with higher wages and more amenities comes a higher cost of living, higher housing prices, and other diseconomies. Businesses face similar problems, too. The combined effects of these flows of people and jobs accumulate slowly over time.
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- How Density Can Deter Growth in America’s Largest Metros, Friday, March 15, 2019 - 12:00