Jei - Sacramento State.pdf

Jei JOURNAL OF ECONOMIC ISSUES Vol. XXXVII No. 4 December 2003 Understanding the Retail Business Potential of Inner Cities Stephan Weiler, Jesse Silverstein, Kace Chalmers, Erin Lacey, William Rogers, and Benjamin Widner Inner city areas are often significantly “under-stored” (Loukaitou-Sideris 2000), with inadequate opportunities for residents to shop near their homes. More residents are tran- sit dependent in inner cities than in the general metro area, making them even more con- strained to local choices. But which types of establishments are needed in which locations? Given their isolation from the economic mainstream, marginalized communi- ties may be the least able to provide information regarding development possibilities. Yet they would also be likely to benefit substantially from such knowledge, given that inner city markets are the focus of less attention than those of economically successful communities. This paper develops methods to bridge this informational gap. Such gaps produce particularly regressive forms of market failure, where economic isolation and stagnation reinforce each other. Business opportunities are likely to exist in the inner city, but pri- vate capital’s focus needs to be reoriented to such possibilities. Public entities may help more by analyzing and provid