Urban and Regional Economics Chapter 9 Urban and Regional Economics

Determinants of a City’s Comparative Advantage Transportation facilities Educational facilities Created environment Natural resources Climate Labor force Leadership

Economic Base Export activities (“basic employment”) Agriculture, manufacturing, mining, and wholesale trade Population serving activities (“non-basic employment”) Construction, public utilities, retail trade

Analyzing Local Demand Short-run demand issues Current supply of real estate improvements Current industrial structure Recent changes in the local economy Likely economic changes in the near future Long-run demand issues Long-run economic prospects for the local economy National & regional trends likely to affect the local economy Likelihood of new firms coming into the area

Bid Rent Curves and Highest and Best Use land rent – the return that a particular parcel of land will bring in the open market highest and best use – the use of land that results in the highest land rent each parcel of land has a highest and best use Bid-rent curves depict the relationship between price and distance that various user groups are willing to bid for various locations in an urban area. As the profitability of less desirable locations decreases, the prices the users are willing to pay also decrease. Figure 9.1

Figure 9.1

Urban Growth Models Concentric Circle growth Axial growth Sector growth Multiple-Nuclei growth

Figure 9.2: Concentric-Circle Growth

Figure 9.3: Axial Growth

Figure 9.4: Sector Growth

Figure 9.5: Multiple-Nuclei Growth

The Importance of Public Facilities in the Growth Process Also known as infrastructure Transportation improvements Sewerage Water lines Cities must provide quality infrastructure to attract business and residential development

Modern Urban Form Various theories of urban growth describe particular aspects of the growth process Commercial Growth Industrial Growth Residential Growth

Dynamics of Neighborhood Change What is a neighborhood? Neighborhood Life Cycle Stages Gestation, Youth, and Maturity Incipient Decline Clear Decline Accelerating Decline and Abandonment Neighborhood stabilization and rehabilitation

End Chapter 9