Urban Economics
Econ 209-01
Spring 2011
Class time: Tu/Th 9:25-10:40
Class Room: Seabury N217
Instructor: Rasha Ahmed Office: WM 317
Email: rasha.ahmed@trincoll.edu
Office Phone: 860-297-2446
Office Hours: Tuesday 12:30-2:00, Thursday 1:00- 2:00 or by appointment
Teaching Assistant: Glenna Grinnel
Course Description and objectives
Urban economics is the study of the location choices of firms and consumers and how these choices affect the formation of cities of different sizes. Throughout the course we will look at:
1. Market forces behind the development of cities
2. Land rent and the role of government in controlling land use within cities
3. Spatial aspects of poverty and crime
4. Unique features of the housing market
5. Local public finance: government spending and taxation
This course will be of interest to students of varied backgrounds and interests, including students interested in public policy, environmental policy, land use policy and urban studies. By the end of the course I hope you acquired the skills to apply some basic economic principles to understanding the formation of cities and the opportunities and challenges they face. I encourage you to do your best to make this class a rewarding experience.
Text
O’Sullivan, Arthur, Urban Economics, 7th edition, Irwin McGraw-Hill.
Grading
Midterm Exam 30%
Final Exam 40%
Class Participation 15%
Homework 15%
There will be one midterm exam on the date shown in the course outline section. I will assign practice sheets that we will do in class to practice the different concepts as we cover them. These will not be graded. There will also be some homework assignments that will be due a week after they are assigned. In class participation is very important and will require that you read the chapters to be covered before each class, do the assigned readings, and come to class prepared to ask questions. Students who actively interact with the class, ask and respond to questions typically do well. I encourage you to participate in class discussion to help keep the class meaningful and enjoyable. Since class participation is an important factor in determining the final grade, attendance is required and missing class will hurt the participation component of a student’s grade.
Policies
1. It is very important that you come to class on time.
2. Cell phones should be turned off during class.
3. Students are not allowed to use laptops in class.
4. If you absolutely must miss an exam, you have to contact me immediately. A make-up exam shall be given only if official documents are provided supporting a valid reason for missing the exam. The format of the make-up exam will be at my discretion.
5. If you accumulate more than two unexcused absences, 3 points will be deducted from your final grade. Excused absences are those absences for which I receive a note from the dean's or the nurse's office.
6. Assignments submitted after the due date will not be accepted regardless of the reason.
7. Assignments that have no names will be discarded a week after they are graded.
8. There will be no "extra credit" assignments.
9. Dishonest conduct or disruptive behavior will not be tolerated. Please refer to the student code of conduct for a review of requirements.
Finally, students are encouraged to speak with me directly should any concerns or difficulties arise. I am happy to work with students who need extra help. Please feel free to drop by during office hours, send an email or speak with me following class time.
Course Outline
The following is an outline of the chapters that we will cover. Additional readings will be assigned as the semester progresses. The outline and dates are intended as a guide and may be changed during the semester.
Week 1: Jan 25, 27
Appendix: Tools of Microeconomics
Chapter 1: Introduction and Axioms of Urban Economics
America's Ten Dead Cities: From Detroit to New Orleans. 24/7 Wall Street, August
2010
Week 2: Feb 1, 3
Chapter 2: Why Do Cities Exist?
O'Sullivan, Arthur (2006). "The first Cities," available in Richard Arnott and Daniel McMillen, A Companion to Urban Economics, Blackwell Publishers
See: The Industrial Revolution: Factory Work
Week 3: Feb 8, 10
Chapter 3: Why Do Firms Cluster?
, 12(2): 139-160.
Diego, Puga. When Sowing and Reaping Happen in Different Places, available in World Development Report 2009 Reshaping Economic Geography, World Bank, Washington, DC
Alfred D Chandler. (1992). "Organizational Capabilities and the Economic History of the Industrial Enterprise," The Journal of Economic Perspectives, 6(3): 79-
S J Liebowitz, & Stephen E Margolis. (1994). "Network Externality: An Uncommon Tragedy," The Journal of Economic Perspectives, 8(2): 133-151
Week 4: Feb 15, 17
Chapter 4: City Size
Van Kooy, John (2008). "Lump Together and Like It," The Economist
Documentary: World Bank. Reshaping Economic Geography, WDR 2009 (click on the full-length 45 min documentary)
Krugman, P. (1991), “Increasing Returns and Economic Geography”, Journal of Political Economy 99, 483-499
Quigley, John M. (1998). "Urban Diversity and Economic Growth," The Journal of Economic Perspectives, 12 (2):127-138
Week 5: Feb 22, 24
Week 6: March 3
Chapter 5 Urban Growth Glaesar, Edward (2008). "Houston, New York Has a Problem," The New York Sun.
Week 7: March 8, 10
Urban Land Rent Chapter 6
Week 8: March 15, 17
Midterm Exam, March 15
Chapter 7 Land Use Patterns
Nechyba, Thomas J. and Randall P. Walsh (2004). "Urban Sprawl," The Journal of Economic Perspectives, 18(4):177-200
See: The End of Suburbia: Oil Depletion and the Collapse of the American Dream,
Week 9: March 22, 24
Spring Break
Week 10: March 29, 31
Chapter 8: Neighborhood Choice
Hoxby, Caroline Minter (1996). "Are Efficiency and Equity in School Finance Substitutes or Complements?" The Journal of Economic Perspectives, 10(4): 51-73.
Mozdzer, Jodie (2009). "Sheff V. O'Neill Case A 20-Year Study In Persistence In Hartford," The Hartford Courant, April 27.
Mieszkowski, Peter and Edwin S. Mills (1993). "The Causes of Metropolitan Suburbanization,". The Journal of Economic Perspectives 7(3): 135-
Week 11: April 5, 7
Chapter 9: Zoning and Growth Controls
MSNBC News "Homes May be 'Taken' for Private Projects," June 23, 2005
Schadewald, Bill (2006). "The only major U.S. city without zoning," Houston Business Journal, April 7
Video: Chinatown Banquet- The Chinese Exclusion Act
Fischel, William (2004). "An Economic History of Zoning and a Cure for its Exclusionary Effects," Urban Studies, 41: 317-340.
Week 12: April 12, 14
Chapter 10: Externalities From Autos Becker, Gary S. (2002). "Want to Cut Gasoline Use? Raise Taxes," Business Week, May 27.
Winston, Clifford (1991). "Efficient Transportation Infrastructure Policy," The Journal of Economic Perspectives, 5(1): 113-128.
Litman, Tod (2006). "London Congestion Pricing: Implications for Other Cities," Victoria Transport Policy Institute.
Crandall, Robert (1992). “Policy Watch: Corporate Average Fuel Economy Standards,” The Journal of Economic Perspectives, 6(2): 171-180.
Portney, Paul (2002). "Penny-Wise and Pound-Fuelish? New Car Mileage Standards in the United States," Resources, spring issue 147.
Week 13: April 19, 21
Chapter 12: Crime Dilulio Jr., John (1996). "Help Wanted: Economists, Crime and Public Policy," The Journal of Economic Perspectives, 10(1): 3-24.
Week 14: April 26, 28
Chapter 14: Housing Policy
Rosin, Hana (2008). "American Murder Mystery," The Atlantic, July/August.
Tucker William (1997). "How Rent Control Drives Out Affordable Housing," Cato Policy Analysis No. 274
See: The Battle over New Orleans public Housing
Crime in Public Housing Creates Urgency for Relocation
Week 15: May 3
Review
Final Exam*, Tuesday May 10, 9:00-11:00 Seabury 217
* If you would like to get back your final exam, you may give me a self-addressed, stamped postcard or envelope and I will mail you the final exam and course grades.