1. Urban and Regional Economics
Chapter 9
Urban and Regional Economics

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

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

4. 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

5. 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

6. Figure 9.1

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

8. Figure 9.2: Concentric-Circle Growth

9. Figure 9.3: Axial Growth

10. Figure 9.4: Sector Growth

11. Figure 9.5: Multiple-Nuclei Growth

12. 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

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

14. 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

15. End Chapter 9