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The economics of skyscrapers: a synthesis

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  • Ahlfeldt, Gabriel M.
  • Barr, Jason
Abstract
This paper provides a synthesis of the state of knowledge on the economics of skyscrapers. First, we document how vertical urban growth has gained pace over the course of the 20th century. Second, we lay out a simple theoretical model of optimal building heights in a competitive market to rationalize this trend. Third, we provide estimates of a range of parameters that shape the urban height profile along with a summary of the related theoretical and empirical literature. Fourth, we discuss factors outside the competitive market framework that explain the rich variation in building height over short distances, such as durability of the structures, height competition, and building regulations. Fifth, we suggest priority areas for future research into the vertical dimension of cities.

Suggested Citation

  • Ahlfeldt, Gabriel M. & Barr, Jason, 2020. "The economics of skyscrapers: a synthesis," LSE Research Online Documents on Economics 108469, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:108469
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Why Doesn’t New York Construct the World’s Tallest Building Anymore?
      by Jason Barr in Skynomics Blog on 2020-12-23 13:17:41
    2. Skyscrapers and Housing Affordability: Debunking Misconceptions
      by Jason Barr in Skynomics Blog on 2021-03-23 12:10:58
    3. Boon or Boondoggle? The Long Run Economics of the Empire State Building
      by Jason Barr in Skynomics Blog on 2020-08-17 12:28:49
    4. COVID-19 and the Market for Skyscrapers
      by Jason Barr in Skynomics Blog on 2020-11-19 13:09:50

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    Keywords

    density; economics; history; skyscraper; urban;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • N0 - Economic History - - General

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