This project will identify the effect of information technology on the location of economic activity. Advances in information technology have the potential to affect firms' location in many ways: with new technologies, a firm might find that it no longer needs to be in cities, or it might no longer need to be near rural clients; a firm might decide to disperse its operations over several distant sites, or it might decide to consolidate in one location. The theoretical possibilities are many, and the overall impact is ultimately an empirical question. By linking data on changes in firm location with data on information technology usage, this research will distinguish which of the popular notions about technology and cities is accurate.
