A locational analysis of growth and change in American metropolitan areas

This article examines the process of growth and change within the American constellation of metropolitan areas. It begins with the premise that regional development happens in two interconnected ways: via demand-induced growth, which is driven by economic opportunity, and supply-induced growth, which is driven by personal preference. The nature and spatial outcome of these mechanisms are investigated by estimating a series of three-equation regional adjustment models wherein changes in population density, employment density, and the average annual wage are endogenously determined. In order to account for spatial dependence in the development process, each model is specified with spatial lags of its three dependent variables and is estimated using a spatial two-stage least squares technique. The results of the analysis illustrate the evolving nature of metropolitan growth and yield insight into the land use patterns that it produces.