Urban Economics intersects economics and geography studying the location choices of economic activity
Why location matter?
Urban Economics intersects economics and geography studying the location choices of economic activity
Why location matter?
What determines people's/firms' willingness to pay for places?
A city is a relatively small area that contains a large number of people
Three conditions must be satisfied for a city to form: Agricultural surplus, urban production, transportation system
The share of people living in cities in the US increased from 2% to 82% between 1700 and 2010. Technology advances caused this movement. Why?
Cities increase our standard of living
A city is a relatively small area that contains a large number of people
Three conditions must be satisfied for a city to form: Agricultural surplus, urban production, transportation system
The share of people living in cities in the US increased from 2% to 82% between 1700 and 2010. Technology advances caused this movement. Why?
Cities increase our standard of living
Thicker markets offer better matches between workers, firms, and consumers
Productivity benefits
Transportation costs
Knowledge spillovers
Consumer cities
Focus on people rather than places
Three key elements:
Focus on people rather than places
Three key elements:
Relies on a spatial equilibrium for workers, employers, and developers
Income + Amenities - Housing Costs - Transportation Costs is constant over space
Prices adjust to achieve locational equilibrium
Self-reinforcing effects generate extreme outcomes
Prices adjust to achieve locational equilibrium
Self-reinforcing effects generate extreme outcomes
Externalities cause inefficiencies
Prices adjust to achieve locational equilibrium
Self-reinforcing effects generate extreme outcomes
Externalities cause inefficiencies
Production is subject to Economies of Scale
Prices adjust to achieve locational equilibrium
Self-reinforcing effects generate extreme outcomes
Externalities cause inefficiencies
Production is subject to Economies of Scale
Competition generates zero economic profit
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Urban Economics intersects economics and geography studying the location choices of economic activity
Why location matter?
Urban Economics intersects economics and geography studying the location choices of economic activity
Why location matter?
What determines people's/firms' willingness to pay for places?
A city is a relatively small area that contains a large number of people
Three conditions must be satisfied for a city to form: Agricultural surplus, urban production, transportation system
The share of people living in cities in the US increased from 2% to 82% between 1700 and 2010. Technology advances caused this movement. Why?
Cities increase our standard of living
A city is a relatively small area that contains a large number of people
Three conditions must be satisfied for a city to form: Agricultural surplus, urban production, transportation system
The share of people living in cities in the US increased from 2% to 82% between 1700 and 2010. Technology advances caused this movement. Why?
Cities increase our standard of living
Thicker markets offer better matches between workers, firms, and consumers
Productivity benefits
Transportation costs
Knowledge spillovers
Consumer cities
Focus on people rather than places
Three key elements:
Focus on people rather than places
Three key elements:
Relies on a spatial equilibrium for workers, employers, and developers
Income + Amenities - Housing Costs - Transportation Costs is constant over space
Prices adjust to achieve locational equilibrium
Self-reinforcing effects generate extreme outcomes
Prices adjust to achieve locational equilibrium
Self-reinforcing effects generate extreme outcomes
Externalities cause inefficiencies
Prices adjust to achieve locational equilibrium
Self-reinforcing effects generate extreme outcomes
Externalities cause inefficiencies
Production is subject to Economies of Scale
Prices adjust to achieve locational equilibrium
Self-reinforcing effects generate extreme outcomes
Externalities cause inefficiencies
Production is subject to Economies of Scale
Competition generates zero economic profit