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Urban and Spatial Economics
Last Updated: 2026-02-05 15:25:11
Abstract
This course explores the economic factors which influence locationdecisions of households and firms, and it explores theories of howthese decisions induce the formation of cities. The course will coverthe neoclassical models of landuse, concepts from the new economicgeography, zoning, and transportation and traffic congestion.
Objective
The objective of the course is to provide graduate students with an understanding of the economic factors which give rise to urban spatial structure and the models which have been employed to study these processes. The course aims to help students develop an appreciation for the use of economic models in both positive and normative frameworks. We will assess both the history of thought regarding the role of markets in creating urban development, and we will read about modern theories of externalities and economic factors which induce agglomeration. The final section of the course will focus on transportation problems in urban areas and the use of economic models to assess public policy measures to deal with congestion and associated externalities.
Content
Outline of Lectures Topic 1: The Basic Muth-Mills model (O'Sullivan, Chapter 1) Topic 2: Why do cities exist? (O'Sullivan, chapters 2, 3, 4) Topic 3: The New Economic Geography Topic 4: Business demand for land and Von Thünen's model (O'Sullivan, chapter 6) Topic 5: Urban spatial structure (O'Sullivan, chapter 7) Topic 6: Land use control (O'Sullivan, chapter 9) Topic 7: City size and city growth (O'Sullivan, chapter 4) Topic 8: Traffic externalities and congestion (O'Sullivan, chapter 10) Topic 9: Public transport (O'Sullivan, chapter 11)
Resources
Lecture Notes
Textbooko Urban Economics by Arthur O'Sullivan, McGraw-Hill, Sixth Edition, 2007.Ancillary Textso A Companion to Urban Economics, Richard Arnott and Daniel McMillen (eds.), Blackwell, 2006.o Handbook of Regional and Urban Economics, Volume 2, North-Holland.o Handbook of Regional and Urban Economics, Volume 4, North-Holland.
Literature
o Brueckner Jan K. (1987), The Structure of Urban Equilibria: A Unified Treatment of the Muth-Mills Model. In: Handbook of Regional and Urban Economics, Volume 2, Chapter 20, North-Holland. o Fujita M. and J.-F. Thisse (2002), Economics of Agglomeration: Cities Industrial Location and Regional Growth, Cambridge University Press. Sections 3.3.1-3.3.2. o Markets and Efficient Resource Allocation in Urban Areas, Edwin S. Mills, Swedish Journal of Economics, 1972. o Urban Spatial Structure, Alex Anas, Richard Arnott, Kenneth A. Small, Journal of Economic Literature, 36(3), pp. 1426-1464, 1998. o Brueckner Jan K. and David A. Fansler, The Economics of Urban Sprawl: Theory and Evidence on the Spatial Sizes of Cities, The Review of Economics and Statistics, 65(3), pp. 479-482, 1983. o Duranton G, and Diego Puga (2004), Micro-foundations of urban agglomeration economies. In: Henderson V. and J-F. Thisse, eds, Handbook of Regional and Urban Economics Vol. 4, Chapter 49, North-Holland. o Rosenthal S. and W. Strange (2004), Evidence on the Nature and Sources of Agglomeration Economies. In: Henderson V. and J-F. Thisse, eds, Handbook of Regional and Urban Economics Vol. 4, Chapter 49, North-Holland. o Holmes, T. J. (1999), Localization of Industry and Vertical Disintegration, Review of Economics and Statistics, 81(2): 314-25. o Hanson, G.H. (1998), North American economic integration and industry location, Oxford Review of Economic Policy, 14(2), 30-44. o Glaeser E. L., J. Kolko, and A. Saiz (2001), Consumer City, Journal of Economic Geography 1, 27-50. o Of hype and hyperbolas: introducing the new economic geography, Peter Neary, Journal of Economic Literature Vol. XXXIX, pp. 536–561, 2001 o The new economic geography, Armin Schmutzler, Journal of Economic Surveys 13(4), 355-379, 1999. o A simple, analytically solvable, Chamberlinian agglomeration model, Michael Pfluger, Regional Science and Urban Economics 34, pp. 565– 573, 2004. o Anas Alex, Richard Arnott, Kenneth A. Small (1998), Urban Spatial Structure, Journal of Economic Literature 36, 1426-1464. o Glaeser, Edward L., Matt Kahn, Chenghuan Chu (2001), Job Sprawl: Employment Location in U.S. Metropolitan Areas, The Brookings Institution Survey Series. o Lang, Robert E. (2000), Office Sprawl: The Evolving Geography of Business, The Brookings Institution Survey Series. o Edward Glaeser, Joseph Gyourko, Raven Saks (2005), Why is Manhattan so expensive? Regulation and the rise in housing prices, Journal of Law and Economics 48, 331-370. o Saku Aura and Thomas Davidoff (2007), Supply constraints and housing prices, Forthcoming in Economics Letters. o Rolf Pendall, Robert Puentes, and Jonathan Martin (2006), From Traditional to Reformed: A Review of the Land Use Regulations in the Nation's 50 largest Metropolitan Areas, The Brookings Institution. Report and regional profiles: http://www.brookings.edu/metro/pubs/20060810_landuse.htm o Paul Krugman (1996), Confronting the Mystery of Urban Hierarchy, Journal of the Japanese and International Economies 10, 399-418. o Soo, Kwok Tong (2005), Zipf’s Law for cities: a cross-country investigation, Regional Science and Urban Economics 35(3), 239 -263. o Duncan Black and Vernon Henderson (2003), Urban evolution in the USA, Journal of Economic Geography 3, 343-272. o Yannis M. Ioannides and Henry G. Overman (2003), Zipf’s Law for cities: an empirical examination, Regional Science and Urban Economics 33, 127-137. o Xavier Gabaix and Yannis M. Ioannides (2004), The Evolution of City Size Distributions, In: Henderson V. and J-F. Thisse, eds, Handbook of Regional and Urban Economics Vol. 4, Chapter 49, North-Holland. o Glaeser. E., L, Scheinkman, and A. Shleifer (1995), Economic growth in cross-section of cities, Journal of Monetary Economics 36, 117-143. o Congestion tolling and urban spatial structures, Richard Arnott, Journal of Regional Science 38(3), pp. 495-504, 1998.
General Information
- Language
- English
- Levels
- DR , MSC
- Frequency
- Yearly recurring
Examination
- Type
- session examination
- Mode
- written 90 minutes
- Aids
- Keine.
Course Components
| Type | Title | Time & Place | Hours |
|---|---|---|---|
| lecture | Urban and Spatial Economics |
|
2 h weekly |
Offered In
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Electives (The entire course programs of ETH Zurich and Lausanne as well as the Universities of Zurich ans St. Gallen are open to the students to individual selection.)
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