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Urban agglomeration economies make cities central to theories of modern economic growth. There is historical evidence for the presence of Smithian growth and agglomeration effects in English towns c.1450-1670, but seminal assessments deny the presence of agglomeration effects and productivity gains to Early Modern English towns. This study evaluates the presence of increasing returns to scale (IRS) in aggregate urban economic outputs—the empirical signature of feedbacks between Smithian growth and agglomeration effects—among the towns of 16th century England. To do so, we test a model from settlement scaling theory against the 1524/5 Lay Subsidy returns. Analysis of these data indicates that Tudor towns exhibited IRS—a finding that is robust to alternative interpretations of the data. IRS holds even for the smallest towns in our sample, suggesting the absence of town size thresholds for the emergence of agglomeration effects. Spatial patterning of scaling residuals further suggests regional demand-side interactions with Smithian-agglomeration feedbacks. These findings suggest the presence of agglomeration effects and Smithian growth in pre-industrial English towns. This begs us to reconsider the economic performance of Early Modern English towns, and suggests that the qualitative economic dynamics of contemporary cities may be applicable to premodern settlements in general. [ABSTRACT FROM AUTHOR]

The article presents a study that economic growth as a manifestation of a general process of development involving improvement in material well-being. It mentions the results of a study reveal agglomeration-driven or Smithian growth as the factor behind improvements in the material conditions of life over time in this society.

Urban economies are composed of diverse activities, embodied in labor occupations, which depend on one another to produce goods and services. Yet little is known about how the nature and intensity of these interdependences change as cities increase in population size and economic complexity. Understanding the relationship between occupational interdependencies and the number of occupations defining an urban economy is relevant because interdependence within a networked system has implications for system resilience and for how easily can the structure of the network be modified. Here, we represent the interdependencies among occupations in a city as a non-spatial information network, where the strengths of interdependence between pairs of occupations determine the strengths of the links in the network. Using those quantified link strengths we calculate a single metric of interdependence–or connectedness–which is equivalent to the density of a city’s weighted occupational network. We then examine urban systems in six industrialized countries, analyzing how the density of urban occupational networks changes with network size, measured as the number of unique occupations present in an urban workforce. We find that in all six countries, density, or economic interdependence, increases superlinearly with the number of distinct occupations. Because connections among occupations represent flows of information, we provide evidence that connectivity scales superlinearly with network size in information networks. [ABSTRACT FROM AUTHOR]

Creative (knowledge-intensive) occupations are now widely seen as a basis for urban economic prosperity. Yet the transitional pathways from a city’s current economy to a more creative economy are often difficult to discern or to navigate. Here we use a network perspective of occupational interdependencies to address questions of urban transitions to a creative economy. This perspective allows us to assess alternative pathways and to compare cities with regard to their progress along these pathways. We find that US urban areas follow a general trajectory towards a creative economy that requires them to increasingly specialise, not only in creative occupations, but also in non-creative ones – presumably because certain non-creative occupations complement the tasks performed by related creative occupations. This creates a pull towards non-creative occupations that becomes ever stronger as a city moves more towards a creative economy. All in all, cities with the most creative economies must undergo an overall diversification of specialised occupations, with a greater diversification rate for creative occupations, and maintain those creative specialisations despite the pull towards a non-creative economy. [ABSTRACT FROM AUTHOR]

Medieval European urbanization presents a line of continuity between earlier cities and modern European urban systems. Yet, many of the spatial, political and economic features of medieval European cities were particular to the Middle Ages, and subsequently changed over the Early Modern Period and Industrial Revolution. There is a long tradition of demographic studies estimating the population sizes of medieval European cities, and comparative analyses of these data have shed much light on the long-term evolution of urban systems. However, the next step—to systematically relate the population size of these cities to their spatial and socioeconomic characteristics—has seldom been taken. This raises a series of interesting questions, as both modern and ancient cities have been observed to obey area-population relationships predicted by settlement scaling theory. To address these questions, we analyze a new dataset for the settled area and population of 173 European cities from the early fourteenth century to determine the relationship between population and settled area. To interpret this data, we develop two related models that lead to differing predictions regarding the quantitative form of the population-area relationship, depending on the level of social mixing present in these cities. Our empirical estimates of model parameters show a strong densification of cities with city population size, consistent with patterns in contemporary cities. Although social life in medieval Europe was orchestrated by hierarchical institutions (e.g., guilds, church, municipal organizations), our results show no statistically significant influence of these institutions on agglomeration effects. The similarities between the empirical patterns of settlement relating area to population observed here support the hypothesis that cities throughout history share common principles of organization that self-consistently relate their socioeconomic networks to structured urban spaces. [ABSTRACT FROM AUTHOR]

Much of the socioeconomic life in the United States occurs in its urban areas. While an urban economy is defined to a large extent by its network of occupational specializations, an examination of this important network is absent from the considerable body of work on the determinants of urban economic performance. Here we develop a structure-based analysis addressing how the network of interdependencies among occupational specializations affects the ease with which urban economies can transform themselves. While most occupational specializations exhibit positive relationships between one another, many exhibit negative ones, and the balance between the two partially explains the productivity of an urban economy. The current set of occupational specializations of an urban economy and its location in the occupation space constrain its future development paths. Important tradeoffs exist between different alternatives for altering an occupational specialization pattern, both at a single occupation and an entire occupational portfolio levels. [ABSTRACT FROM AUTHOR]

The factors that account for the differences in the economic productivity of urban areas have remained difficult to measure and identify unambiguously. Here we show that a microscopic derivation of urban scaling relations for economic quantities vs. population, obtained from the consideration of social and infrastructural properties common to all cities, implies an effective model of economic output in the form of a Cobb-Douglas type production function. As a result we derive a new expression for the Total Factor Productivity (TFP) of urban areas, which is the standard measure of economic productivity per unit of aggregate production factors (labor and capital). Using these results we empirically demonstrate that there is a systematic dependence of urban productivity on city population size, resulting from the mismatch between the size dependence of wages and labor, so that in contemporary US cities productivity increases by about 11% with each doubling of their population. Moreover, deviations from the average scale dependence of economic output, capturing the effect of local factors, including history and other local contingencies, also manifest surprising regularities. Although, productivity is maximized by the combination of high wages and low labor input, high productivity cities show invariably high wages and high levels of employment relative to their size expectation. Conversely, low productivity cities show both low wages and employment. These results shed new light on the microscopic processes that underlie urban economic productivity, explain the emergence of effective aggregate urban economic output models in terms of labor and capital inputs and may inform the development of economic theory related to growth. [ABSTRACT FROM AUTHOR]

Home to over half the world's population, cities are the drivers of the global economy and the primary influencers of the Earth's sustainability. Thus, the burden of sustainable economic development falls ever more on cities, with many global organizations and governments calling for the promotion of ‘green’ economies. Yet how does a city move from its current economic structure to a green economy? Using detailed occupational data for US cities, we develop a green jobs index based on the network of interdependencies between occupational specializations. Using this index we quantify how close a city's current economy is to the green economy. We further show that movement or transition through this ‘occupation space’ toward a green economy is a slow and difficult process, with the average annual movement towards a green economy across all US cities being close to zero. Such difficulty is uncorrelated with a city's current population size, density, per capita GDP, per capita income, or even the city's current green jobs index. Furthermore, the structure of occupational interdependencies gives rise to suboptimal movements towards the green economy. [ABSTRACT FROM AUTHOR]