Urban Economics

Economics 4621H

Spring 2004

COURSE SYLLABUS

 

Instructor

Thomas Holmes

945 Mgmt & Econ

Office Hours: Tues, 1:00-3:00

Email: holmes@econ.umn.edu

Home Page: www.econ.umn.edu/~holmes

 

Course Home Page

http://www.econ.umn.edu/~holmes/class/2004s4621/econ4621.html

 

Course Information

The prerequisites for this class are intermediate microeconomic theory (Econ 3101) and one semester of calculus.  Some familiarity with statistics is helpful but not required.  This class is an honors class. 

The course requirements include two midterms (each counts 20% towards final grade), a final (30%), and homework (30 percent).  The homework assignments will take several forms, including problem sets, brief data analyses with Excel, and short written assignments.  Written assignments must be typed.  Problem sets can be typed or handwritten.

If a student has an excused absence for one of the midterms, the other midterm and the final exam will be reweighted to determine the final grade.

 

Readings

 

Readings will be assigned out of the textbook as well as various articles that will be available on the web.  The text is:  O’Sullivan, Urban Economics, Fifth Edition, Irwin, McGraw-Hill 2003

The additional readings include some that are required (marked with a “*”) and others that supplementary.   Some of the readings are technical pieces from leading economics journals.  In general, students will not be tested on the technical material in the articles.  Rather, students should carefully read the introduction and skim the rest of the paper to get the main idea.  The degree to which a student needs to be familiar with the details of a paper will be clear from the emphasis given to the paper in lecture. 

Look to the course home page on the web to keep track of the required readings.  The course outline given below is only tentative.  The reading list will evolve over time. 

 

Key Dates

 

Thursday, Feb. 19.  First Midterm

Tuesday, March 30.  Second Midterm

Wed. May 12.  Final Exam (8:00-10:00 a.m.)

 


Tentative Course Outline (Note some of the links require access to a University of Minnesota computer)

           

I.   Introduction

 

o        O’Sullivan, Ch 1

 

           

II.  The Internal Structure of Cities

·         The monocentric model of the city

o        O’Sullivan, Ch 7-9

·         Sprawl

o        *Edward L. Glaeser and Matthew E. Kahn , “Sprawl and Urban Growth,” Harvard Institute of Economic Research, Discussion Paper # 2004 (Forthcoming Handbook of Urban and Regaional Economics)

·         Land Use Controls

o        O’Sullivan, Ch 10

o        Metropolitan Council, “Regional Development Framework,” Adopted January 14, 2004

o        Center of the American Experiment, “Task Force on Metropolitan Governance,” Dec. 2003.

 

III.  Sorting by Income and Race; the Tiebout Model, Local Government

·         Sorting by income

o        O’Sullivan, Ch 13, 14, 17

·         Sorting by race

o        *David M. Cutler; Edward L. Glaeser; Jacob L. Vigdor “The Rise and Decline of the American Ghetto,” The Journal of Political Economy, Vol. 107, No. 3. (Jun., 1999), pp. 455-506.

·         Education

o        O’Sullivan, Ch 15

o        Background only: Hanushek, Eric, Publicly Provided Education,” in Handbook of Public Economics  (Amsterdam: North-Holland, 2002), pp.2047-2143

o        Background only: Strom, Tim, “Minnesota School Finance: A Guide For Legislators,” January 2004

·         Local Government

o        O’Sullivan, Ch 19, 20

 

IV.  Transportation

·         Autos

o        O’Sullivan, Ch 11

·         Mass Transit

o        O’Sullivan, Ch 12

 

V.  Cities as Part of the Larger Economy; Firm Location, Government Policy

·         Scale Economies and Zipf’s Law

o        O’Sullivan, Ch 2, 3

o        *Dora L. Costa & Matthew E. Kahn, 2000. "Power Couples: Changes In The Locational Choice Of The College Educated, 1940-1990," The Quarterly Journal of Economics, Vol. 115 (4) pp. 1287-1315.

o         

·         Firm Location and Central Place Theory

o         O’Sullivan, 4, 5

o        Thomas J. Holmes and John J. Stevens, “Spatial Distribution of Economic Activities in North America," January 2003, (Forthcoming Handbook of Urban and Regional Economics)

o        *Thomas J. Holmes, The Journal of Political Economy, Vol. 106, No. 4. (Aug., 1998), pp. 667-705.

o        Background information on Tax Increment Financing

 

·         Economic development policy

o        O’Sullivan, 6

o        Coulson, Edward and Jerry Carlino, “Compensating differentials and the Social Benefits of the NFL,” Penn State working paper, March 2004.