American Economic Review: Insights
ISSN 2640-205X (Print) | ISSN 2640-2068 (Online)
Prime Locations
American Economic Review: Insights
(pp. 374–92)
Abstract
We develop a method for delineating prime locations—ultradense clusters of economic activity—within cities and apply it to comprehensive establishment data covering all US metropolitan areas. We further use big data to extend the analysis to a global context where administrative data are sparse. Many cities in the United States and around the world are dominated by a small number of prime locations that can concentrate up to one-half of tradable services jobs on tiny shares of land and are dominant centers of economic gravity. In cities with fewer prime locations, a larger tradable services share concentrates in them.Citation
Ahlfeldt, Gabriel M., Thilo N. H. Albers, and Kristian Behrens. 2026. "Prime Locations." American Economic Review: Insights 8 (3): 374–92. DOI: 10.1257/aeri.20240193Additional Materials
JEL Classification
- C55 Large Data Sets: Modeling and Analysis
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- R32 Other Spatial Production and Pricing Analysis
- R38 Production Analysis and Firm Location: Government Policy
- R52 Regional Government Analysis: Land Use and Other Regulations
- R58 Regional Development Planning and Policy