Urban and Regional Economics

  • Determinants of a City’s Comparative Advantage
    • Transportation facilities
    • Educational facilities
    • Created environment
    • Natural resources
    • Climate
    • Labor force
    • Leadership
  • Economic Base
    • Export activities
      • Agriculture, manufacturing, mining, and wholesale trade
    • Population serving activities
      • Construction, public utilities, retail trade
  • The Location of People
    • Cities develop in places that offer firms a competitive advantage
    • When jobs are plentiful other factors such as personal preferences come into play
    • See Close-Up “The Rise of the ‘Location Neutral’ Migrant”
  • Analyzing Local Demand
    • Short-run demand issues
      • Current supply of real estate improvements
      • Current industrial structure
      • Recent changes in the local economy
      • Likely economic changes in the near future
    • Long-run demand issues
      • Long-run economic prospects for the local economy
      • National and regional trends likely to affect the local economy
      • Likelihood of new firms coming into the area
  • Bid Rent Curves and Highest and Best Use
    • Land rent – the return that a particular parcel of land will bring in the open market
    • Highest and best use – the use of land that results in the highest land rent
    • Each parcel of land has a highest and best use
    • Bid-rent curves depict the relationship between price and distance that various user groups are willing to bid for various locations in an urban area. As the profitability of less desirable locations decreases, the prices the users are willing to pay also decrease.
    • See Figure 14.1 Theoretical Price-Distance Relationships
  • Urban Growth Models
    • Concentric circle growth
      • Land use patterns are defined as concentric circles around a Central Business District
      • As growth occurs, the rings expand, with land uses changing to the new land use indicated by the expanding rings. For example, as the CBD grows, slums are converted to CBD-type uses.  Also, as the area grows, higher-income housing becomes lower-income housing as it gets older and older.
      • See Figure 14.2 Concentric-Circle Growth
    • Axial growth
      • Based on the notion that growth tends to occur along transportation routes and nodes, resulting in star-shaped cities.
      • See Figure 14.3 Axial Growth
    • Sector growth
      • Based on the notion that particular types of land uses tend to occur in wedge-shaped sectors extending outward from the center of a city.
      • See Figure 14.4 Sector Growth
    • Multiple-nuclei growth
      • Based on the notion that many cities form more than one central business district, with certain land uses clustered around those points
      • See Figure 14.5 Multiple-Nuclei Growth
  • The Importance of Public Facilities in the Growth Process
    • Also known as infrastructure
      • Transportation improvements
        • See Figure 14.6 The Impact of Freeway Construction on Urban Development
      • Water and Sewer facilities
        • See Figure 14.7 The Impact of a Major Sewer Line on Urban Development
      • See Case Study “A Tale of Two Cities: A Tale of Two Cities: Flint, Michigan and West Point, Georgia”
  • Dynamics of Neighborhood Change
    • What is a neighborhood?
    • Neighborhood life cycle stages
      • Gestation, youth, and maturity
      • Incipient decline
      • Clear decline
      • Accelerating decline and abandonment
    • Neighborhood stabilization and rehabilitation
    • See Case Study “Neighborhood Revitalization”
  • Urban Form: A Synthesis
    • Various theories of urban growth describe particular aspects of the growth process
      • Commercial growth
      • Industrial growth
      • Residential growth