More Urbanized States Have Higher GDP

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Alex Tabarrok points out that states with a higher urbanization rate have higher GDP.

You see the same pattern with metro regions in PA. The 5 densest, urbanized areas produce fully 71% of the state’s wealth:


The lesson is clear – if you want your state to produce more wealth, your transportation, land use, and economic development policies need to be focused on increasing the number of people who can live in the most productive areas.

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