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We develop a method for delineating prime locations—ultra-dense 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 US 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.
