Syllabus
Urban Economics
Karl Storchmann, Spring 2011
Course Description
Critical analysis of the economics of cities and urban regions. Will cover a wide range of
theoretical approaches and policy options such as the existence and growth of cities, land
use theories, urban transportation, pollution, poverty, crime, and housing.
After reviewing various economic theories that are aimed at explaining spatial aspects of
the economy, we will focus on the policies, which were developed to solve urban
problems. The main emphasis will be to develop a critical view with respect to the
efficiency, as well as the side effects, of policy instruments such as taxes and subsidies,
command and control policies, zoning, or policing. Each option will be considered and
discussed by means of concrete examples.
The textbook used in class is "Urban Economics" by O'Sullivan (5th ed.). Weekly
readings will include textbook chapters academic journal articles, statistical information,
and newspaper articles. Students will be expected to join in a structured discussion of the
weekly reading. A research paper on an approved topic (bold topics below) related to the
themes of the class (about 15-20 pages) is due for the final class and a detailed outline is
due at midterm. Students will make a presentation based on their research paper in the
last few sessions.
Grades will be given on basis of attendance and participation in the classroom discussion
(20%), the presentation of the research paper (10%), the research paper itself (30%) and
two tests (each 20%).
Contact
Karl Storchmann, Economics Dept, 19 W. 4th Street, Room 704,
email: karl.storchmann@nyu.edu
Office Hours, Tue and Thu, 4:30-5:30pm and by appointment
Textbook/Readings
Main Textbook:
O’Sullivan, A. (2008), Urban Economics, 7th ed., New York: McGraw-Hill
Additional readings:
Balchin, P., Isaac, D. and Chen, J. (2000), Urban economics – a global perspective. New
York: Palgrave.
Levy, J. (1985), Urban and metropolitan economics. New York: McGraw-Hill.
Newman, P. and Kenworthy, J. (1999), Sustainability and cities. Overcoming automobile
dependence. Washington D.C.: Island Press
Glaeser, E. and Kohlhase, J. (2003), Cities, regions and the decline of transportation
costs. NBER Working Paper No.9886. Cambridge, Mass.
Storchmann, K. (2005), Externalities by automobiles and fare free transit in Germany. A
paradigm shift? Journal of Public Transportation 6(4), 89-105.
Storchmann, K. (2001), The impact of fuel taxes on public transport. Transport Policy 8,
19-28.
Syllabus
(1) Market Forces in Development of Cities
- why do cities exist?
- what determines size?
- what causes growth/decline
- impact of local government?
(2) Land Use
- determinants of land prices
- why segregation by income within cities?
- from monocentric to disperse cities
- reasons for and impact of zonings
(3) Urban Transportation
- congestion and policy options
- deficit of transit authorities
- efficiency of bus vs. train system (rail/subway)
- light rail systems
- parking
MIDTERM EXAM: TBA
(4) Urban Problems and Public Policy
- why highest poverty rates in central cities?
- is fact that poor together deteriorating?
- why is educational achievement so low in certain neighborhoods?
- economics of crime (effectiveness of punishment etc)
- why higher crime rates in central cities?
(5) Housing and Public Policy
- what makes housing different from other goods?
- why do poor rent and don’t own??
- market effects of housing polices
- causes of homelessness
(6) Local Government Expenditures and Taxes
- pros and cons of fragmented system of local gov’s within met area
- is majority voting system efficient? (median voter model)
- is the local property tax regressive or progressive?
- response to grants from state or national gov’s (matching, non-matching)
- determinants of urban expenditure (sports, culture)
FINAL EXAM: TBA