Growing cities bad for productivity

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Research by the the Australian Housing and Urban Research Institute (AHURI) has found that cities with less than 3 million people experience better productivity and economic growth than larger cities:

The Australian Housing and Urban Research Institute-commissioned report has found a causal relationship between economic growth and productivity slowdown, and unaffordable housing and traffic congestion in some of Australia’s biggest cities…

AHURI’s latest research found a positive relationship between population and income was conditional on city population levels with cities of up to three million people more likely to experience economic growth than larger cities.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.