Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295948 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 16925
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Demand externality generated by the agglomeration of commercial activities is a potential source of city formation. We study the impact of a large-scale urban redevelopment program involving the construction of a shopping complex at the center of Tokyo. The redevelopment program increased the land price and commercial building use in its neighborhood. It also increased the total sales of neighborhood firms but not their profits. We argue that the redevelopment program generated substantial demand externality but the benefit fell on the landlord.
Subjects: 
demand externality
shopping externality
urban redevelopment program
JEL: 
R12
R14
R52
Document Type: 
Working Paper

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