Center for Economics and the Environment: Policy Series
The purpose of this paper to examine the data on economic growth across cities in the United States to see if the data supports the notion that cities are major contributors to their state’s economic growth. We find that even though cities account for a disproportionate amount of economic growth in a majority of states, merely having a metropolitan area (or two) in your state does not guarantee economic success for the state. As we narrow the focus to Missouri, we find that over the past two decades not one metropolitan area in Missouri ranks higher in growth rates than 197th out of the 385 metro areas across the United States. In addition, we look at some policy decisions that might account for why some metropolitan areas grow at a lower rate than others do. We look into a specific policy, the imposition of an earnings tax. Since Kansas City and St. Louis city both levy such an earnings tax, such an analysis is not without immediate importance.
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Haslag, Joseph H. and Shaw, Brookelyn, "How do Cities Matter? A Review of Missouri and Its Recent Economic Growth" (2020). Center for Economics and the Environment. 7.