Urban Economics (agglomeration economies)

Background: Policymakers sometimes turn to place-based policies (as distinct from policies that target individuals) with the goal of revitalizing cities, creating jobs, and alleviating poverty.

Please write one paragraph for each question (two paragraphs total)

1). Proponents of these policies note that the existence of agglomeration economies lends itself to these policies. Explain this argument from the point of view of the proponents in one concise paragraph.

2). Critics of these policies note that revitalization of places through government spending policies comes at the expense of other places that do not receive those funds. Referencing the uploaded TVA article, what do you think of this criticism? Explain.