Effect of beltways on metropolitan economic activity

There is debate on the effect of beltways, also known as loop and perimeter highways, on metropolitan economic activity. This article contributes to t hat debate by evaluating the association between beltways and retail/servic e activity among 44 metropolitan areas in the United States. After controll ing for other factors, statistical analysis indicates that metropolitan are as with one or more beltways fared less well in sales per capita than metro politan areas with no beltways and metropolitan areas with one beltway fare d better than those with two or more. The reason is that beltways deconcent rate metropolitan populations to levels mat prevent the creation of trade a reas sufficient to support retail and service firms at the margins. Policy implications are offered.