superstar cities

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pages: 484 words: 131,168

The Big Sort: Why the Clustering of Like-Minded America Is Tearing Us Apart by Bill Bishop, Robert G. Cushing

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1960s counterculture, affirmative action, big-box store, blue-collar work, Cass Sunstein, citizen journalism, cognitive dissonance, David Brooks, demographic transition, desegregation, Edward Glaeser, immigration reform, income inequality, Jane Jacobs, knowledge economy, meta analysis, meta-analysis, Milgram experiment, music of the spheres, New Urbanism, post-industrial society, Post-materialism, post-materialism, Ralph Nader, Richard Florida, Ronald Reagan, Silicon Valley, stem cell, Steve Jobs, superstar cities, The Death and Life of Great American Cities, union organizing, War on Poverty, white flight, World Values Survey

May Be Losing Status as a Majority-Black City," Washington Post, May 17, 2007, p. A1. 52. Glaeser and Gottlieb, "Urban Resurgence and the Consumer City," pp. 13–15. 53. Joseph Gyourko, Christopher Mayer, and Todd Sinai, "Superstar Cities" (National Bureau of Economic Research Working Paper No. 12355, July 2006). 54. Glaeser and Gottlieb, "Urban Resurgence and the Consumer City." 55. Richard Florida, "Cities and the Creative Class," City and Community, March 2003, pp. 3–19. 56. Terry Nichols Clark, The City as Entertainment Machine (Oxford: Elsevier, 2004). 57. Gyourko, Mayer, and Sinai, "Superstar Cities," p. 2. 58. Data collected by the Bus Project in Portland, Oregon, and provided to the author. 7. Religion: The Missionary and the Megachurch 1. Brad Stone, "Social Networking's Next Phase," New York Times, March 3, 2007, p.

"Like a gas, entrepreneurship is hotter when compressed."47 The busting of the tech bubble in the early 2000s slowed the growth in these cities, but only temporarily. By early 2007, demographer William Frey was telling a "tale of two kinds of cities." Those producing patents and technology were expanding again; the older cities that made things—Buffalo, Cleveland, Toledo, Detroit—were reporting continuing declines.48 The Rise of the Superstar Cities People migrate to maximize their economic returns. At least that's been the most common explanation for why people move. They pull up stakes to make or save money. Economic utility seemed to be motivating both employers and workers in the 1970s; then, big-city businesses were paying higher wages to keep and attract workers. But by 1990, there was no wage advantage to living in one of the twenty-six largest metro areas.

In the sought-after cities, however, they shot out of sight. In 1940, for example, the average house in Cincinnati cost more than a home in San Francisco. Over the next sixty years, the price of a Cincinnati house increased from $65,000 to $145,000. The total population of San Francisco had changed little in that time, but the average house price rose by a factor of nine, from $60,162 to nearly $550,000. Gyourko dubbed these places "superstar cities," metro areas where residence had become, in essence, a luxury good.53 People paid for the privilege of being in cities such as San Francisco, Seattle, San Jose, Portland, Los Angeles, New York, Austin, and Raleigh-Durham because they wanted to live there, not because they expected an economic return. The function of cities had changed. Their reason for being—and their residents' reason for living within them—was no longer to produce salable goods and services.


pages: 391 words: 97,018

Better, Stronger, Faster: The Myth of American Decline . . . And the Rise of a New Economy by Daniel Gross

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2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, Airbnb, American Society of Civil Engineers: Report Card, asset-backed security, Bakken shale, banking crisis, BRICs, British Empire, business process, business process outsourcing, call centre, Carmen Reinhart, clean water, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, currency manipulation / currency intervention, demand response, Donald Trump, Frederick Winslow Taylor, high net worth, housing crisis, hydraulic fracturing, If something cannot go on forever, it will stop, illegal immigration, index fund, intermodal, inventory management, Kenneth Rogoff, labor-force participation, LNG terminal, low skilled workers, Mark Zuckerberg, Martin Wolf, Maui Hawaii, McMansion, mortgage debt, Network effects, new economy, obamacare, oil shale / tar sands, oil shock, peak oil, Plutocrats, plutocrats, price stability, quantitative easing, race to the bottom, reserve currency, reshoring, Richard Florida, rising living standards, risk tolerance, risk/return, Silicon Valley, Silicon Valley startup, six sigma, Skype, sovereign wealth fund, Steve Jobs, superstar cities, the High Line, transit-oriented development, Wall-E, Yogi Berra, Zipcar

The collapsing housing market has turned many Americans into prisoners in their own homes. With mortgages underwater, people in Southern California’s Imperial Valley, where the unemployment rate was 30 percent in July 2011, can’t easily sell their homes and move to North Dakota, where jobs are plentiful. The “superstar cities” thesis, advanced by Christopher Mayer of Columbia University and Joseph Gyourko and Todd Sinai of the University of Pennsylvania, explains why real estate values in certain cities around the world have held up well. Superstar cities have lots of people, big industries, and limited land and zoning regulations that help stop massive development. Crucially, they also have big transportation networks that bind residents together. It’s not uncommon for people who live in New Jersey to work in Westchester, New York, or to commute from Brooklyn to Manhattan.

article_id=35036; for Google’s solar-powered parking structures, see http://pluginbay area.org/fileadmin/materials/zero_emissions/EV_and_PHEV/Solar_Fuel_Station_Brochure.pdf. 8. On Governor Christie’s rejecting tunnel funds, see http://www.cnn.com/2010/US/10/07/new.jersey.tunnel.project/; the Regional Plan Association’s study can be seen at http://www.rpa.org/2010/07/arc-to-raise-home-values-by-18-billion.html. 9. The “superstar cities” paper can be seen at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=921741; Dana Rubinstein, “Rail Stations Drive Demand,” Wall Street Journal, June 13, 2011. Conclusion. The Myth of American Decline 1. Data on home starts are available at the U.S. Census residential construction site, http://www.census.gov/construction/nrc/; data on home sales volume are from www.realtor.org. 2. The Macroeconomic Advisers report can be seen at http://macroadvisers.blogspot.com/2011/05/long-view-on-housing-theres-boom-out.html. 3.

., 124 Stiglitz, Joseph, 6, 9 stimulus, 23, 57, 81 economic decline and, 5–6 infrastructure and, 209–10, 212 timely policy decisions and, 28, 30–32 stocks, stock markets, 1–2, 7–8, 12–13, 15–18, 109, 180, 185 capitalization of, 22, 25, 198–99, 204 declines and collapse of, 18, 56, 81, 171 inports and, 133, 136, 147 Internet and, 15, 21–22, 82 restructuring and, 51–52 timely policy decisions and, 35, 37–38, 42–43 Stoffel, Bob, 77 stress tests, 37 Subaru, 173 Subramanian, Arvind, 8 subways, 212–13 suicides, 8 Summers, Lawrence, 3–4, 10, 26 infrastructure and, 205, 208 Super Cool Biz campaign, 9, 60–61 Super Girl, 20 supersizing, 199–214, 216 ability to scale in, 204, 207–8, 214 Apple and, 199–201 employment and, 199–201, 203–7, 209–11 infrastructure and, 202–14 networks and, 199, 201–4, 206–9, 211–13 superstar cities thesis, 212–13 Swift, Earl, 207 Syria, 227 Taphandles, 177–78 Target, 58, 177 Tata, Ranan, 117 Tata Consultancy Services, 172 taxes, taxpayers, 46, 83, 109, 175, 212 on carbon, 61, 75, 103–4, 217 on corporations, 146–47, 163 cutting of, 10, 30–31, 150, 157, 181, 218, 221–22 economic policy proposals and, 217–18 efficiency economy and, 61, 75 efficient consumers and, 181, 191 employment and, 163, 166 infrastructure and, 205, 208 inports and, 133, 136–37, 146–47 North Dakota and, 150, 152, 157 timely policy decisions and, 30–36, 38–42 Taylor, Frederick Winslow, 61 TD Bank, 92 technology, 3, 7–8, 10, 14–15, 48–49, 96, 104, 108, 121–22, 164, 170, 195, 211 efficiency economy and, 77, 79–80 efficient consumers and, 184, 192 FDI and, 84, 86 North Dakota and, 151, 160 telegraph, 206, 209, 214 Temporary Liquidity Guarantee Program (TLGP), 34 Term Asset-Backed Securities Loan Facility (TALF), 34, 48 Terminator, The, 134 Tesla, 79 Texas, 5, 86, 118, 141–42, 206 Barnett Shale in, 79, 151 Thain, John, 48 This Time Is Different (Rogoff and Reinhart), 5, 17 Three Gorges, Three Gorges Dam, 7, 202 timely policy decisions, 28–44, 60, 80 auto industry and, 33, 40–43 bailouts and, 28, 31–43 banks and, 32–34, 36–40, 43 housing and, 29, 32, 34–35, 42–43, 54–55 restructuring and, 44, 58–59 stimulus and, 28, 30–32 TARP and, 36–38, 40 TMD Friction Group, 88 Tokyo, 8–9, 29, 67, 138, 168 Super Cool Biz campaign in, 9, 60–61 Toledo, Allan, 95 total quality management, 61–62 tourism, 82, 208, 215 exports and, 116, 121–26, 164 inports and, 132, 137–38, 144–45 medical, 125–26, 145 retrofitting Empire State Building and, 69, 71–72 Toyota, 79, 87 Toys“R”Us, 141 trade, 3, 14, 19, 22, 24, 26, 94, 106, 152 deficits in, 102, 107, 168, 221–22 surpluses in, 101, 122 see also exports Transformers, 129 transportation, 72, 101, 105, 167, 169, 224, 226 efficiency economy and, 76, 158, 223 North Dakota and, 152, 158 supersizing and, 205, 208, 210–13 see also autos, automakers Transportation Department, NYC, 192–93 Treasury Department, U.S., 21, 26, 47, 133, 218 TARP and, 37–38, 54 timely policy decisions and, 32–38, 42 Troubled Asset Relief Program (TARP), 47, 54 bailouts and, 36–38, 40–42 Trust Bank, 129 Tsongas, Paul, 14 Tung Chee Hwa, 22 Turkey, 26, 71, 117, 123, 126, 129 inports and, 132, 139 Twitter, 204, 227 U.K.


pages: 363 words: 28,546

Portfolio Design: A Modern Approach to Asset Allocation by R. Marston

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asset allocation, Bretton Woods, capital asset pricing model, capital controls, carried interest, commodity trading advisor, correlation coefficient, diversification, diversified portfolio, equity premium, Eugene Fama: efficient market hypothesis, family office, financial innovation, fixed income, German hyperinflation, high net worth, hiring and firing, housing crisis, income per capita, index fund, inventory management, Long Term Capital Management, mortgage debt, passive investing, purchasing power parity, risk-adjusted returns, Robert Shiller, Robert Shiller, Ronald Reagan, Sharpe ratio, Silicon Valley, superstar cities, transaction costs, Vanguard fund

P1: a/b c11 P2: c/d QC: e/f JWBT412-Marston T1: g December 20, 2010 17:3 Printer: Courier Westford 225 Real Assets—Real Estate TABLE 11.6 Real House Appreciation in 12 Largest Cities 1978 Q1–2009 Q4 New York Los Angeles Chicago Dallas Philadelphia Houston Miami Washington Atlanta Detroit Boston San Francisco 2000 Q1–2009 Q4 Geometric Average Cumulative Return Geometric Average Cumulative Return 3.1% 2.1% 0.5% −0.2% 1.4% −0.7% 1.1% 1.6% 0.2% −0.4% 3.1% 2.8% 163.5% 93.6% 17.8% −6.8% 56.7% −21.4% 42.4% 68.3% 6.3% −12.7% 163.8% 145.2% 4.5% 4.4% 1.4% 0.6% 3.6% 2.1% 3.2% 4.4% 0.1% −3.5% 3.5% 3.9% 55.8% 54.1% 14.4% 6.3% 41.8% 22.5% 36.6% 53.4% 0.8% −30.2% 40.4% 46.9% Cities are ranked by size of metropolitan statistical areas. Housing data are from the FHFA. CPI data are from the IMF, International Financial Statistics. Why are the rates of house appreciation so varied? An interesting paper by Gyourko, Mayer, and Sinai (2006) entitled Superstar Cities focuses on two key factors. For house prices to rise rapidly, there must be substantial growth of population in the area, and that requires substantial job growth. But that alone is not enough, since a city like Atlanta has surely seen a lot of growth. In addition, a city (or, more accurately, metropolitan area) must impose limits on land use. Los Angeles and San Francisco certainly qualify in this regard.

Geert Rouwenhorst, 2006, “Facts and Fantasies about Commodity Futures,” Financial Analyst Journal (March/April), pp. 47–68. Greenwich Associates, 2009, Greenwich Investment Report. Gyourko, Joseph, and Donald B. Keim, 1993, “Risk and Return in Real Estate: Evidence from a Real Estate Stock Index,” Financial Analyst Journal (September/ October), pp. 39–46. Gyourko, Joseph, Christopher Mayer, and Todd Sinai, 2006, “Superstar Cities,” working paper. Harvard Management Company Endowment Report, 2009, “Message from the CEO”, September. He, Guangliang, and Robert Litterman, 1999, “The Intuition Behind BlackLitterman Model Portfolios,” Goldman Sachs Investment Management Division. Hennessee Group LLC, 2007, “Sources of Hedge Fund Capital,” The 2007 Manager Survey. Himmelgerg, Charles, Christopher Mayer, and Todd Sinai, 2005, “Assessing High House Prices: Bubbles, Fundamentals and Misperceptions,” Journal of Economic Perspectives (Fall), 67–92.


pages: 444 words: 138,781

Evicted: Poverty and Profit in the American City by Matthew Desmond

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affirmative action, Cass Sunstein, crack epidemic, Credit Default Swap, deindustrialization, desegregation, dumpster diving, ending welfare as we know it, ghettoisation, glass ceiling, housing crisis, informal economy, Jane Jacobs, late fees, New Urbanism, payday loans, price discrimination, profit motive, rent control, statistical model, superstar cities, The Chicago School, The Death and Life of Great American Cities, thinkpad, upwardly mobile, working poor, young professional

Over the last several decades, millions of people around the world have migrated from rural villages and towns. In 1960, roughly one-third of the planet lived in urban areas; today, more than half does. Cities have experienced real income gains that have brought about global poverty reductions. But therein lies the rub, for the growth of cities also has been accompanied by an astonishing surge in land values and housing costs. Urban housing costs have risen around the globe, especially in “superstar cities” whose real-estate markets have experienced an influx of global capital, driving housing prices upward and crowding out low-income residents. In Lagos, Africa’s largest city, an estimated 60 percent of all residents dedicate the majority of their monthly income to rent, even as the majority of the city’s residents live in one-room dwellings. Rents in Delhi’s business district now rival those in midtown Manhattan.

Roughly 330 million urban households worldwide live in substandard or unaffordable housing demanding more than 30 percent of their income. By 2025, based on migration trends and global income projections, that number is expected to climb to 440 million households, representing 1.6 billion people. The world is becoming urbanized, and the city is becoming unaffordable to millions everywhere. See Joseph Gyourko, Christopher Mayer, and Todd Sinai, “Superstar Cities,” American Economic Journal: Economic Policy 5 (2013): 167–99; McKinsey Global Institute, A Blueprint for Addressing the Global Affordable Housing Challenge (New York: McKinsey, 2014); Pedro Olinto and Hiroki Uematsu, The State of the Poor: Where Are the Poor and Where Are They Poorest? (Washington, DC: World Bank, Poverty Reduction and Equity, 2013). 35. Russell Engler, “Pursuing Access to Justice and Civil Right to Counsel in a Time of Economic Crisis,” Roger Williams University Law Review 15 (2010): 472–98; Russell Engler, “Connecting Self-Representation to Civil Gideon,” Fordham Urban Law Review 37 (2010): 36–92. 36.


pages: 353 words: 98,267

The Price of Everything: And the Hidden Logic of Value by Eduardo Porter

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Asian financial crisis, Ayatollah Khomeini, banking crisis, barriers to entry, Berlin Wall, British Empire, capital controls, Carmen Reinhart, Cass Sunstein, clean water, Credit Default Swap, Deng Xiaoping, Edward Glaeser, European colonialism, Fall of the Berlin Wall, financial deregulation, Ford paid five dollars a day, full employment, George Akerlof, Gordon Gekko, guest worker program, happiness index / gross national happiness, housing crisis, illegal immigration, immigration reform, income inequality, income per capita, informal economy, invisible hand, Jean Tirole, John Maynard Keynes: technological unemployment, Kenneth Rogoff, labor-force participation, laissez-faire capitalism, loss aversion, low skilled workers, Martin Wolf, means of production, Menlo Park, Mexican peso crisis / tequila crisis, new economy, New Urbanism, pension reform, Peter Singer: altruism, pets.com, placebo effect, price discrimination, price stability, rent-seeking, Richard Thaler, rising living standards, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, Silicon Valley, stem cell, Steve Jobs, Stewart Brand, superstar cities, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, trade route, transatlantic slave trade, transatlantic slave trade, ultimatum game, unpaid internship, urban planning, women in the workforce, World Values Survey, Yom Kippur War, young professional

International comparisons of inequality are found in Organisation for Economic Co-operation and Development, Growing Unequal? Income Distribution and Poverty in OECD Countries (OECD Publishing, October 2008), pp. 77-92. Data on the impact of income inequality on health and segregation are drawn from Richard Wilkinson and Kate Pickett, The Spirit Level: Why More Equal Societies Almost Always Do Better (New York: Bloomsbury Press, 2010); and Joseph Gyourko, Christopher Mayer, and Todd Sinai, “Superstar Cities,” NBER Working Paper, July 2006. 125-127 The Vanishing Middle: The discussion of the impact of education on income growth draws from Claudia Goldin and Lawrence Katz, The Race Between Education and Technology (Cambridge, Mass.: Belknap Press of Harvard University Press, 2008); David Autor and David Dorn, “Inequality and Specialization: The Growth of Low-Skill Service Jobs in the United States,” NBER working paper, November 2008; Congressional Budget Office, “Changes in the Distribution of Workers’ Annual Earnings Between 1979 and 2007,” October 2009; Francine Blau, Marianne Ferber, and Anne Winkler, The Economics of Women, Men and Work, 5th edition (Upper Saddle River, N.J.: Pearson Prentice Hall, 2006); Bureau of Labor Statistics (www.bls.gov/news.release/wkyeng.t05.htm, accessed 08/08/2010); Census Bureau, “Income, Poverty, and Health Insurance Coverage in the United States,” 2008 (www.census.gov/prod/2009pubs/p60-236.pdf, accessed 08/09/2010); Bureau of Labor Statistics, “100 Years of U.S.

Southeast Asia on a Shoestring Travel Guide by Lonely Planet

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active transport: walking or cycling, airport security, Alfred Russel Wallace, anti-communist, British Empire, call centre, car-free, carbon footprint, clean water, clockwatching, colonial rule, Google Earth, haute cuisine, indoor plumbing, large denomination, low cost carrier, Mason jar, megacity, Skype, South China Sea, spice trade, superstar cities, sustainable-tourism, trade route, urban sprawl, women in the workforce

Angkor Wat is the world’s largest religious building; Bayon is the world’s weirdest spiritual monument with its immense four-sided stone faces; and at Ta Prohm nature has run amok. Siem Reap is the base to explore this collection of temples and is a buzzing destination with superb restaurants and bars. Beyond the temples are cultural attractions, such as floating villages and cooking classes. ANDERS BLOMQVIST / LONELY PLANET IMAGES © Bangkok (Thailand) 3 Southeast Asia’s superstar city (Click here) has it all in supersized proportions: food, shopping, fun and then some… It might be a pressure cooker for new arrivals but it will be a needed dose of civilisation after weeks of dusty back roads. Build in plenty of time to load up on souvenirs, refresh your wardrobe, be plucked and kneaded and recount tall tales over a sweaty bottle of beer. Don’t forget a sunset river ferry ride, an evening noodle tour of Chinatown and one final round of temple spotting.