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Chicago Fed Letter, No. 139, March 1999
Should Governments Try to Control Suburban Growth

Many people believe that suburbanization, or urban sprawl, to use the pejorative term, is excessive in most U.S. metropolitan areas. This Chicago Fed Letter examines the reasons for this belief and concludes that it is misplaced. In my view, the issue is that governments have drastically mispriced metropolitan transportation facilities. Appropriate pricing would reduce driving, but would not have dramatic spatial effects.

Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois 60604-1413, USA. Tel. (312) 322-5322

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