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The work-from-home revolution and the performance of cities

Author

Listed:
  • Stephen Bond-Smith

    (University of Hawai'i, Economic Research Organization)

  • Philip McCann

    (The University of Manchester, The Productivity Institute)

Abstract
In this paper we set out the relationships between the behavioural, technological and spatial changes in systems that allow for heterogeneous responses to working-from-home by different types of actors, and also identifies the channels via which such changes take place. Unlike all other papers on the subject, the analytical framework we propose centers explicitly on the role of frequency of commuting. In particular, we find that the optimal frequency of commuting is positively related to the opportunity costs of less-than-continuous face-to-face interaction and inversely related to the travel plus travel-time costs. The results also support recent empirical findings of a “donut effect†with greater growth in the suburbs and hinterlands around large cities, but also capture inter-city effects for the first time. Counterintuitively, the reduction in the frequency of commuting makes larger cities and their hinterlands more desirable places, in spite of longer commuting distances. Taken together, our results imply enhanced productivity of larger cities over smaller cities.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Stephen Bond-Smith & Philip McCann, 2022. "The work-from-home revolution and the performance of cities," Working Papers 026, The Productivity Institute.
    • Handle: RePEc:anj:wpaper:026
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    References listed on IDEAS

    as
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    Cited by:

    1. Gilles Duranton & Jessie Handbury, 2023. "COVID and Cities, Thus Far," Economic Policy Review, Federal Reserve Bank of New York, vol. 29(2), pages 6-52, October.
    2. Steven Bond-Smith, 2022. "Diversifying Hawai‘i’s specialized economy: A spatial economic perspective," Working Papers 2022-5, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.

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    More about this item

    Keywords

    Working-from-home; agglomeration economies;

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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