10. Broadband and basic internet technology may benefit low-density areas (see Kolko 2012; Forman, Goldfarb, and Greenstein 2005). 11. Preference for proximity arises when consumers move “big data”; small differences in response time can be important for users. Preference for nearby suppliers is also motivated by “server hugging” among client firms that wish to monitor shared facilities to ensure that promised efficiencies are delivered. 12. Industry convention has designated a data center’s size by its use of electricity, while the capacity measure is flexible enough to handle different uses for the servers, such as storage, computation, and so on.
References Alder, S. 2015. “Chinese Roads in India: The Effect of Transport Infrastructure on Economic Development.” In Society for Economic Dynamics, 2015 Meeting Papers. Allen, T. 2014. “Information Frictions in Trade.” Econometrica 82 (6): 2041–83. Asher, S., and P. Novosad. 2020. “Rural Roads and Local Economic Development.” American Economic Review 110 (3): 797–823. Asturias, J. 2020. “Endogenous Transportation Costs.” European Economic Review 123, 103366. Atack, J., F. Bateman, M. Haines, and R. A. Margo. 2010. “Did Railroads Induce or Follow Economic Growth? Urbanization and Population Growth in the American Midwest, 1850–1860.” Social Science History 34 (2): 171–97. Atack, J., and R. A. Margo. 2011. “The Impact of Access to Rail Transportation on Agricultural Improvement: The American Midwest as a Test Case, 1850–1860.” Journal of Transport and Land Use 4 (2): 5–18. Atkin, D., and D. Donaldson. 2015. “Who’s Getting Globalized? The Size and Implications of Intranational Trade Costs.” Working Paper 21439, National Bureau of Economic Research, Cambridge, MA. Baldwin, R. 2011a. “Trade and Industrialization after Globalization’s 2nd Unbundling: How Building and Joining a Supply Chain Are Different and Why It Matters.” Working Paper 17716, National Bureau of Economic Research, Cambridge, MA. Baldwin, R. 2011b. “21st Century Regionalism: Filling the Gap between 21st Century Trade and 20th Century Trade Rules.” CEPR Policy Insight No. 56, Centre for Economic Policy Research, London. Baum-Snow, N., L. Brandt, J. V. Henderson, M. A. Turner, and Q. Zhang. 2017. “Roads, Railroads, and Decentralization of Chinese Cities.” Review of Economics and Statistics 99 (3): 435–48. Behrens, K., W. M. Brown, and T. Bougna. 2018. “The World Is Not Yet Flat: Transport Costs Matter!” Review of Economics and Statistics 100 (4): 712–24. Bernard, A. B., A. Moxnes, and Y. U. Saito. 2019. “Production Networks, Geography, and Firm Performance.” Journal of Political Economy 127 (2): 639–88. Besley, T., T. Fetzer, and H. Mueller. 2015. “The Welfare Cost of Lawlessness: Evidence from Somali Piracy.” Journal of the European Economic Association 13 (2): 203–39. Blankespoor, B., T. Bougna, R. Garduno-Rivera, and H. Selod. 2017. “Roads and the Geography of Economic Activities in Mexico.” Policy Research Working Paper 8226, World Bank, Washington, DC. Blum, B. S., and A. Goldfarb. 2006. “Does the Internet Defy the Law of Gravity?” Journal of International Economics 70 (2): 384–405. Brancaccio, G., M. Kalouptsidi, and T. Papageorgiou. 2020. “Geography, Transportation, and Endogenous Trade Costs.” Econometrica 88 (2): 657–91.
92
Place, Productivity, and Prosperity
