The U.S. as a coastal nation

Jordan Rappaport and Jeffrey D. Sachs

No RWP 01-11, Research Working Paper from Federal Reserve Bank of Kansas City

Abstract: U.S. economic activity is overwhelmingly concentrated at its ocean and Great Lakes coasts. Economic theory suggests four possible explanations: a present-day productivity effect, a present-day quality-of-life effect, delayed adjustment following a historical productivity or quality-of-life effect, and an agglomeration effect following a historical productivity or quality-of-life effect. Controlling for correlated natural attributes such as the weather and including proximity measures which a priori do not influence quality-of-life, linear regressions suggest that the high coastal concentration of economic activity is primarily due to a productivity effect. Extensively controlling for historical economic density suggests that such a productivity effect continues to be operative today.

Keywords: Productivity; Quality of life (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (11)

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