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Geography and the Internet: Is the Internet a Substitute or a Complement for Cities?
The authors study the tendency to connect to the Internet, and the online and offline shopping behavior of connected persons, to draw inferences about whether the Internet is a substitute or a complement for cities. Using online and offline spending data, the authors find that connected persons spend more on books and
clothing online, relative to their offline spending, if they are farther from offline stores.
Link
Available for purchase at: http://www.nber.org/papers/W10028