We develop a method for delineating prime locations - ultradense 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 United States 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.

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3 September 2026

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American Economic Review: Insights 8(3) , pp.374-392, 2026

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DOI: 10.1257/aeri.20240193

https://www.aeaweb.org/articles?id=10.1257/aeri.20240193

This Journal article is published under the centre's Urban programme.