Prime Locations

We develop a method for delineating prime locations—ultradense clusters of economic activity—within cities and apply it to comprehensive establishment data covering all US metropolitan areas. We further use big data to extend the analysis to a global context where administrative data are sparse. Many cities in the United States and around the world are dominated by a small number of prime locations that can concentrate up to one-half of tradable services jobs on tiny shares of land and are dominant centers of economic gravity. In cities with fewer prime locations, a larger tradable services share concentrates in them. (JEL C55, R23, R32, R38, R52, R58)