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Urban Economics Essay

415 words - 2 pages

I. Dualism
Poverty/lowincome-difficult to measure, may include social capital, human capital.
1. Spatial mismatch
a. Distance from residence to work
i. Transportation/commute
b. Housing-informal settlers
2. Type of labor
c. Inequality of human capital
d. Labor mismatching
3. Neighborhood Segregation
e. Gated communities vs. maids
f. Production of slums(Planet of slums)
II. Agglomoration
A. Trading cities and Factory cities(specialization/comparative advantage)
B. Later benefits
1. Knowledge spillover
2. Labor pooling, sharing, matching

III. Size of cities
IV. Why is the Housing Market different?
a. Housing-heterogenous, durable, immobile, expensive to move
i. dependent on Income
b. Best housing policy ...view middle of the document...

mixed Land zone
xi.
V. Automobiles vs. Mass Transit
f. Types of externalities(internalize the externality)
xii. Automobiles
1. More opportunity to tax
a. Pollution tax(environment)
b. Gasolinetax(congestion)
c. Color/Number-coding(congestion)
xiii. Transits
2. Requires supporting ingrastructure
3. Stages
d. Collection-home to vehicle
e. Line-Haul-On Vehicle
f. Distribution-Vehicle to place of work
4. Feasible if high density of riders and stops
5. Bus is more efficient than light rail
VI. Urban Poverty and the informal sector
g. Planet of slums
xiv. Overurbanization-driving people to Rural areas(Expanded Metropolitan areas/Indonesia and NCR
xv. IMR and World bank-deregulation-surplus of
xvi. Decoupling of urbanization and manufacturing
xvii. Typology of informal housing
6. Egypt-tombs as settlments
7. Peru-Catholic Church as “slumlords”
8. Rental tenements
9. Invisible renters-informal sector-no solidarity or organization
Five Axioms of Urban Economics
1. Prices adjust to Locational Equilibium-when no one has the incentive to move
2. Self-reinforcing effects Generate extreme outcomes-effect with additional effects
3. Externalities cause inefficiency-benefits or costs external to the transaction
4. Production is Subject to Economies of Scale-average cost of production decreases as output increases
5. Competition generates Zero Economic profit
a. Economic Profit=total revenue-total economic cost
b. Competition has a spatial dimension
i. Profit of each firm is affected by the location of other firms.
ii. Spatial competition
c. Firms will continue to enter the market until economic profit drops to zero

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