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Urban Guide
Econ 460 Urban Economics
Lecture 4: Epilogue
Instructor: Hiroki WatanabeSummer 2012
© 2012 Hiroki Watanabe 1 /13
Urban Guide
1 Urban GuideWhere We StartedFrom Here on out — US Cities vs European Cities
© 2012 Hiroki Watanabe 2 /13
Urban Guide
Where We Started
© 2012 Hiroki Watanabe 3 /13
Urban Guide
Where We Started
1st / 2nd natureInterurban relationship betw bright areasInterrelationship betw bright and dark areasOverall distribution of citiesIntraurban relationship inside the dotTransportation
© 2012 Hiroki Watanabe 4 /13
Urban Guide
From Here on out — US Cities vs European Cities
We focused on US cities.Mathematical models can go wrong only when:
1 you start with a wrong set of assumptions2 you make a mistake in derivation
What assumption is violated in a city?European cities for example.Why are they so centralized?
© 2012 Hiroki Watanabe 5 /13
Urban Guide
From Here on out — US Cities vs European Cities
Muth-Mills condition: the slope of bid-rent functionis given by
dp(r)
dr=−ts(r)
.
Example 4.1 in Lecture 1A:
dn(r)/dr
n(r)= −t.
Bid rent drops 100t% every mile (bid-rent gradient).
© 2012 Hiroki Watanabe 6 /13
Urban Guide
From Here on out — US Cities vs European Cities
0 0.2 0.4 0.6 0.8 10
0.5
1
1.5
2
2.5
Distance r from CBD
Pop
ulat
ion
Population under Different Transportation Cost
n(r)|t=1
n(r)|t=2
0 0.2 0.4 0.6 0.8 10
0.5
1
1.5
2
2.5
Distance r from CBD
Pop
ulat
ion
Population under Different Transportation Cost
© 2012 Hiroki Watanabe 7 /13
Urban Guide
From Here on out — US Cities vs European Cities
1 US t:60-80: Extensive highway system installedComparatively low gas costLow commuting cost
2 European t:Not as far-reaching as the US counterpart
© 2012 Hiroki Watanabe 8 /13
Urban Guide
From Here on out — US Cities vs European Cities
Taste differences:US Higher preferences for large space size
Europe Appreciates amenitiesFinancing public school:
US Local property tax on housing (filteringeffect)
Paris The entire city is in the same schooldistrict
© 2012 Hiroki Watanabe 9 /13
Urban Guide
From Here on out — US Cities vs European Cities
How about other cities?460 is yours to keep now. Ask: Which modelapplies? What assumption is consistent?
© 2012 Hiroki Watanabe 10 /13
Urban Guide
Map du Jour
Source www.motherboard.tv/2010/12/14/facebook-world-a-map-of-the-social-graph
© 2012 Hiroki Watanabe 11 /13
Urban Guide
Index
bid-rent function, 6filtering effect, 9Muth-Mills condition, 6
property tax, 9school district, 9
© 2012 Hiroki Watanabe 12 /13
Urban Guide
Credit Where Credit Is Due
Special thanks toFujita sensei and Professor Berliant for inspirationA couple of characters I borrowed from NBCDottie and Beth at Teaching Center for educationalsupportJessica for administrative supportMy roommate’s cat Lola for constant distractionTwo cheesecakes I baked during this semester forstress reliefLast but not least, 6 devoted urbanites for strongcommitment
The End ☺
© 2012 Hiroki Watanabe 13 /13