A fascinating examination of the contrasting development styles of French and English settlements and potential implications.

A Fine Theorem

Cities have two important properties: they are enormously consequential for people’s economic prosperity, and they are very sticky. That stickiness is twofold: cities do not change their shape rapidly in response to changing economic or technological opportunities (consider, e.g., Hornbeck and Keniston on the positive effects of the Great Fire of Boston), and people are hesitant to leave their existing non-economic social network (Deryagina et al show that Katrina victims, a third of whom never return to New Orleans, are materially better off as soon as three years after the hurricane, earning more and living in less expensive cities; Shoag and Carollo find that Japanese-Americans randomly placed in internment camps in poor areas during World War 2 see lower incomes and children’s educational outcomes even many years later).

A lot of recent work in urban economics suggests that the stickiness of cities is getting worse, locking path dependent…

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