Creative Destruction: Barriers to Urban Growth and the Great Boston Fire of 1872

S-Tier
Journal: American Economic Review
Year: 2017
Volume: 107
Issue: 6
Pages: 1365-98

Authors (2)

Richard Hornbeck (University of Chicago) Daniel Keniston (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Urban growth requires the replacement of outdated buildings, yet growth may be restricted when landowners do not internalize positive spillover effects from their own reconstruction. The Boston Fire of 1872 created an opportunity for widespread simultaneous reconstruction, initiating a virtuous circle in which building upgrades encouraged further upgrades of nearby buildings. Land values increased substantially among burned plots and nearby unburned plots, capitalizing economic gains comparable to the prior value of burned buildings. Boston had grown rapidly prior to the Fire, but negative spillovers from outdated durable buildings had substantially constrained its growth by dampening reconstruction incentives.

Technical Details

RePEc Handle
repec:aea:aecrev:v:107:y:2017:i:6:p:1365-98
Journal Field
General
Author Count
2
Added to Database
2026-02-02