Haas cites a group of computer programmers who frequent Starbucks. For a time, he says, they thought they might face economic difficulties. But since their company is now going to be purchased by venture capitalists, Haas says he has seen the quality of their coffee drinks increase in anticipation of economic good fortune.

"They've really increased their usage," Haas says, laughing.

Location, Location, Location

Shop owners and economists suggest it is the unique nature of Square clientele that has kept the area largely unaffected by the economic slowdown.

"Cambridge is just a little bit more insulated than other locations," says Cambridge Chamber of Commerce President Tom Lucey. "The educational industry is not significantly impacted by what's happening."

Laibson agrees.

"The dire consequences of a stock market decline apply to particular sectors of the economy and the Square is not high-tech sensitive," Laibson says. "It's mostly a destination for students and tourists and I don't think Harvard students are in the hardest hit group."

-Staff writer Daniela J. Lamas can be reached at lamas@fas.harvard.edu.