4

University of Wisconsin - Eau Claire

Department of Economics

ECON 375 Dr. DaCosta

Urban Economics http://www.uwec.edu/dacostmn/

Fall 2008 Office: SSS 477

Telephone: 836-4511

E-mail:

Syllabus

OFFICE HOURS: Mon., Wed., & Fr. 2:00 – 3:30; Th. 1:30 – 3:30; or by appointment

COURSE DESCRIPTION: “An examination of the economic performance of urban economies, including theory, problems and policies. Includes the application of economics to intricacies of such urban problems as poverty, housing, transportation, pollution and the urban environment” (UW-Eau Claire 2008-09 catalogue, p. 102). GE-IIIB; CD1.

COURSE PREREQUISITES: ECON 103 and basic algebra; minimum sophomore standing

ACADEMIC GOALS: The baccalaureate degree at UW-Eau Claire provides students with the knowledge and abilities needed for lifelong learning. In designing the degree, the faculty expect that graduates will have achieved the following goals: an understanding of a liberal education; appreciation of the university as a learning community; understanding of science, the scientific method, and numerical data; appreciation of the arts; understanding of values, human behavior, and human institutions; ability to inquire, think, and analyze as well as write, read, speak, and listen; historical consciousness; and international and intercultural experiences (UW-Eau Claire 2008-09 catalogue, page 4; emphasis added for this class).

STUDENTS WITH DISABILITIES: Any student who has a disability and is in need of classroom accommodations, please contact the instructor and theServices for Students with Disabilities Office in Old Library 2136 at the beginning of the semester.

RESOURCES:

·  Textbook: Urban Economics, 6th edition, by Arthur O’Sullivan, 2007

·  Urban America : growth, crisis, and rebirth, by John F. McDonald, 2008 (Reserve)

·  Desire2Learn: PowerPoint Slides and other materials will be posted on D2L

Readings on Reserve (also available on E-Reserve and D2L):

1.  The Economist, “A Special Report on Cities: The World Goes to Town,” May 5th 2007.

2.  The Economist, “A Survey of America: Degrees of Separation,” July 16th 2005.

3.  Jordan Rappaport, “U.S. Urban Decline and Growth, 1950-2000,” Federal Reserve Bank of Kansas City Economic Review, Vol. 88, No. 3, 15-42, 2003. http://www.kc.frb.org/publicat/econrev/PDF/3q03rapp.pdf

4.  Canfei He, “Location of Foreign Manufacturers in China: Agglomeration Economies and Country of Origin Effects,” Papers in Regional Science, Vol. 82, No. 3, 351-372, July 2003.

5.  John Quigley, “Urban Diversity and Economic Growth,” Journal of Economic Perspectives, Vol. 12, No. 2, 127-138, spring 1998.

6.  Edward L. Glaeser and Janet E. Kohlhase, “Cities, Regions and the Decline of Transport Costs,” Papers in Regional Science, Vol. 83, No. 1, 197-228, January 2004.

7.  The Economist, “A Survey of New York: The Town of the Talk,” February 19th 2005.

8.  Thomas J. Nechyba and Randall P. Walsh, “Urban Sprawl,” The Journal of Economic Perspectives, Vol. 18, No. 4, 177-200, Autumn, 2004.

9.  Edwin Mills and Luan S. Lubuele, “Inner Cities,” Journal of Economic Literature, Vol. XXXV, June 1997.

10.  Richard Voith, “Do Suburbs Need Cities?” Journal of Regional Science, Vol. 38, No. 3, 445-64, August 1998.

11.  Michael Porter, “New Strategies for Inner-City Economic Development,” Economic Development Quarterly, Vol. 11, 11-27, 1997.

12.  The Economist, “Special Report: Blacks in America,” August 6th 2005.

13.  Kenneth A. Small, “Economics and Urban Transportation Policy in the United States,” Regional Science and Urban Economics, Vol. 27, 671-91, 1997.

14.  The Economist, “Avoiding Gridlock,” February 17th, 2003.

15.  U.S. Department of Transportation, Federal Highway Administration, “Value Pricing Pilot Program,” (http://www.fhwa.dot.gov/policy/vppp.htm)

16.  Steven D. Levitt, “Understanding Why Crime Fell in the 1990s: Four Factors That Explain the Decline and Six That Do Not,” The Journal of Economic Perspectives, Vol. 18, No. 1. 163-190, 2004.

17.  John Quigley and Steven Raphael, “Is Housing Unaffordable? Why Isn’t It More Affordable?” Journal of Economic Perspectives, Vol. 18, No. 1, 191-214, winter 2004.

18.  Lance Freeman & Darrick Hamilton, “A Dream Deferred or Realized: The Impact of Public Policy on Fostering Black Homeownership in New York City Throughout the 1990’s,” AEA Papers and Proceedings, Vol. 92, No. 2, May 2002.

19.  Paul W. Rhode and Koleman S. Strumpf, “Assessing the Importance of Tiebout Sorting: Local Heterogeneity from 1850 to 1990,” American Economic Review, Vol. 93, No. 5, 1648-1677, December 2003.

20.  Rebecca M. Blank, “Fighting Poverty: Lessons from Recent U.S. History,” Journal of Economic Perspectives, Vol. 14, No. 2, spring 2000.

21.  Charles Michalopoulos, “What Works Best for Whom? The Effects of Welfare and Work Policies by Race and Ethnicity,” Eastern Economic Journal, Vol. 30, No. 1, winter 2004

22.  The Economist, “A Survey of Chicago: A Success Story,” March 18th 2006.

In addition, you are encouraged to read a major newspaper such as The New York Times or The Wall Street Journal and bring to class any materials you find relevant.

COURSE EVALUATION & ACADEMIC POLICIES

Exams and Grading:

Tentative Subject Matter

Exam 1

/ Parts I and II / 20%
Exam 2 / Parts III and IV / 25
Final exam / Parts V and VI / 25
Homework / 2 research papers / 20
In class activities / 10

Dates: All the exam dates will be announced at least one week in advance. The final exam is on Thursday, December 18th at 8:00 am.

Make-ups: Make-ups will be given only under extreme circumstances and only in the week of December 15th. They will be considerably harder to reflect added study time.

Homework: Homework assignments will be graded and discussed in class. Late assignments are subject to penalty of 5% per day.

Exams / Homework / Exams / Homework
A
A-
B+
B
B-
C+ / 93-100%
90-92
87-89
83-86
80-82
77-79 / 100
92
89
86
82
79 / C
C-  
D+
D
D-  
F / 73-76
70-72
65-69
60-64
55-59
0-54 / 76
72
69
64
59
45
Attendance and class participation: Students are expected to attend all class sessions and participate in class discussions and activities. Videotapes, DVDs, and guest lectures will supplement lectures when possible. That material will be incorporated in the exams. Attendance will be taken.

Civility: “As members of this class, we are members of a larger learning community where excellence is achieved through civility. Our actions affect everyone in our community. Courtesy is reciprocated and extends beyond our local setting, whether in future jobs, classes, or communities.” (http://www.uwec.edu/civility/ ) Please turn off all cell phones and iPods.

Academic Integrity: Iconsider any academic misconduct in this course as a serious offense. The disciplinary procedures and penalties for academic misconduct are described in the UW-Eau Claire Student Services and Standards Handbook (http://www.uwec.edu/sdd/publications.htm) in Chapter UWS14—Student Academic Disciplinary Procedures.

Weeks / Topic / Textbook Chapter (Ch) & Reserve Readings (R)
1 / I Introduction / Ch. 1: Introduction and Axioms of Urban Economics
------
R1: The Economist, “A Special Report on Cities”
R2: The Economist, “A Survey of America: Degrees of Separation”
4 / II Market Forces in the Development of Cities / Ch. 2: Why Do Cities Exist?
Ch. 3: Why Do Firms Cluster?
Ch. 4: City Size
Ch. 5: Urban Growth
Additional Chapter: Where Do Firms Locate?
------
R3: Rappaport, “U.S. Urban Decline and Growth, 1950-2000”
R4: He, “Location of Foreign Manufacturers in China”
R5: Quigley, “Urban Diversity and Economic Growth”
R6: Glaeser et al., “Cities, Regions, and the Decline of Transport Costs”
R7: The Economist, “A Survey of New York: The Town of the Talk”
3 / III Land Rent and Land Use Patterns / Ch. 6: Urban Land Rent
Ch. 7: Land Use Patterns
Ch. 8: Neighborhood Choice
Ch. 9: Zoning and Growth Controls
------
R8: Nechyba & Walsh, “Urban Sprawl”
R9: Mills & Lubuele, “Inner Cities”
R10: Voith, “Do Suburbs Need Cities?”
R11: Porter, “New Strategies for Inner-City Economic Development”
R12: The Economist, “Blacks in America”
2 / IV Urban Transportation / Ch. 10: Externalities from Autos
Ch. 11: Mass Transit
------
R13: Small, “Economics and Urban Transportation Policy in the US”
R14: The Economist “Avoiding Gridlock”
R15: Federal Highway Administration, “Value Pricing Pilot Program”
4 / V Urban Problems: Crime and Housing / Ch. 12: Urban Crime
Ch. 13: Why is Housing Different?
Ch. 14: Housing Policy
------
R16: Levitt, “Understanding Why Crime Fell in the 1990s”
R17: Quigley & Raphael, “Is Housing Unaffordable?”
R18: Freeman & Hamilton, “A Dream Deferred or Realized”
1 / VI Local
Government / Ch. 15: The Role of Local Government
------
R19: Rhode & Strumpf, “Assessing the Importance of Tiebout Sorting”
R20: Blank, “Fighting Poverty: Lessons from Recent U.S. History”
R21: Michalopoulos, “What Works Best for Whom?”
R22: The Economist, “A Survey of Chicago: A Success Story”

4