8 questions on Urban and Regional Economics

by

Business Finance

  • Different types of cities emerge under different circumstances. For each of the following cases explain the axioms of urban economics and the economic market forces, which cause a city of a particular type to develop.
    • Backyard production – no cities.
    • Trading city.
    • Factory city.
    • Processing city
    • Innovation city.
  • Firms are often attracted to large cities even though they have their direct competitors. What are the market forces behind this phenomenon? Explain all types of urbanization and localization economies and illustrate each one with a general real-world example.
  • Cities tend to grow when businesses decide that it is economically beneficial for them to locate there. However, not all types of firms have the same effect on city growth. Provide a detailed analysis of the multiplier effect and its impact on city growth. Include graphs.
  • Bid-rent curves and housing price curves are graphical models illustrating the relationship between the distance from the city center and the price (bid-rent). Graph and explain the differences between the following cases
  • What are the negatives of urban sprawl? Explain how innovations in transportation contributed to this problem.
  • Explain the step-by-step process in which differing demand for public goods can lead to segregation.
  • The aim of public policy is often to counteract externalities, but the problem is that externalities are often hard to quantify. What is congestion externality? What is the difference between the private and social costs of travel? How does the proposed congestion tax attempt to solve the problem of the congestion externality?
  • Urban transit is usually heavily subsidized. Provide an example and analysis of when it is a good idea and when it isn’t.