Abstract
Abstract. The national economy is split into four broad sectors. The observed variation in long‐term growth among sectors leads to a shift in the composition of aggregate demand. I test Henderson's propositions, namely that secular shifts in the composition of national demand lead to changes in the numbers and sizes of different types of urban places. The numbers and sizes of places specialized in the information sector has increased while the numbers and sizes of places specialized in manufacturing has decreased or has not changed. Metropolitan population growth and per capita earnings growth are enhanced by specialization in the information sector.
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