Published Oct 25, 2023 A Metropolitan Statistical Area (MSA) is a geographical region with a high population density and economic integration. It consists of one or more counties and includes a core urban area with a large population center. MSAs are defined by the Office of Management and Budget (OMB) in order to provide a standardized way of measuring and comparing different metropolitan areas within the United States. To better understand the concept of a Metropolitan Statistical Area, let’s consider an example. Imagine a region that includes a major city, such as New York City. The MSA for this area would encompass not only the city itself but also the surrounding counties in New York, New Jersey, and Connecticut that have a significant level of economic integration and commuting patterns with the urban core. This MSA would capture the population, economic activity, and social dynamics of the entire area, rather than just focusing on the city limits. Within the MSA, there may be additional divisions, such as Metropolitan Divisions or Micropolitan Statistical Areas, which provide further granularity in terms of population size and economic characteristics of smaller sub-areas within the larger MSA. Metropolitan Statistical Areas play a crucial role in understanding urban dynamics, economic development, and regional planning. By defining and analyzing MSAs, policymakers, researchers, and businesses can gain insights into the demographics, economic indicators, and social factors that shape different metropolitan areas. This information helps in making informed decisions related to infrastructure investments, resource allocation, and targeted policies to support the growth and well-being of urban populations. Additionally, MSAs are used for various statistical and administrative purposes, such as collecting and analyzing data on employment, housing, and population trends.Definition of Metropolitan Statistical Area (MSA)
Example
Why Metropolitan Statistical Areas Matter
Economics