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A Companion to Urban Economics - Arnott and McMillen - Part 2

P A R T I I Urban Land Use Land rents, population densities, building heights, and lot sizes vary dramatically within urban areas. Central business areas may have 60-story office buildings, while small, two- or three-story buildings lie unused and boarded up just a mile or two away.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 5

C H A P T E R F I V E The Spatial Pattern of Land Use in the United States 5.1 INTRODUCTION There is currently great interest in understanding and managing the impacts of land-use changes on individual and social well-being.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 6

C H A P T E R S I X Monocentric Cities 6.1 INTRODUCTION Anyone who is even a casual student of cities has noted that, within a particular city, the economic landscape can vary dramatically, especially with proximity to the central business district.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 7

C H A P T E R S E V E N Space in General Equilibrium 7.1 INTRODUCTION How do households distribute themselves in a spatial dimension? Do they distribute themselves efficiently? What determines land-use patterns?

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A Companion to Urban Economics - Arnott and McMillen - Chapter 8

C H A P T E R E I G H T Testing for Monocentricity 8.1 INTRODUCTION The monocentric city model of Muth (1969) and Mills (1972) is still the dominant model of urban spatial structure. Its central predictions – that population density, land values, and house prices fall with distance from the city center

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A Companion to Urban Economics - Arnott and McMillen - Part 3

P A R T I I I Housing and Real Estate Whereas the monocentric city model attempts to explain broad spatial patterns in prices and land use within urban areas, the subfields of housing and real estate are generally conducted at more micro levels of analysis.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 9

C H A P T E R N I N E The Economic Theory of Housing Tenure Choice 9.1 INTRODUCTION Within the theory of housing markets, one may broadly distinguish three approaches, which roughly correspond to the historical development of the discipline.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 10

C H A P T E R T E N Housing Policy: LowIncome Households in France 10.1 INTRODUCTION Housing consumption and investment remain subsidized even in the most liberal countries. In 2001, the United States spent 1.54 percent of GDP, and France 1.74 percent, on public aid to housing.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 11

C H A P T E R E L E V E N Housing Demand: An International Perspective 11.1 INTRODUCTION Housing markets reflect distinctive national and regional policies and practices. It is important to increase understanding of housing markets and, in particular, of housing demand behavior

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A Companion to Urban Economics - Arnott and McMillen - Chapter 12

C H A P T E R T W E L V E Discrimination in Mortgage Lending 12.1 INTRODUCTION Mortgage market discrimination has been categorized as blatant treatment, differential treatment, and adverse impact. Blatant treatment involves explicit refusal to lend or explicit lending policies that consider prohibited demographic

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A Companion to Urban Economics - Arnott and McMillen - Chapter 13

C H A P T E R T H I R T E E N Commercial Real Estate 13.1 INTRODUCTION Imagine a city with nothing but houses, public institutions, and parks. It might be serene, but what a dull place it would be – not really a city at all. Commercial real estate is what gives a city much of its life and character.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 14

C H A P T E R FOURTEEN Housing Price Indexes 14.1 INTRODUCTION: WHY ARE ACCURATE HOUSING PRICE INDEXES IMPORTANT? The value of owner-occupied housing accounts for upwards of one-third of total household net wealth in the United States.

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A Companion to Urban Economics - Arnott and McMillen - Part 4

P A R T IV Urban Transportation Transportation economics is a well-defined field of economics. Its subfields can be categorized along three dimensions: transport mode, passenger/freight, and supply/demand/policy; maritime freight supply is therefore a subfield

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A Companion to Urban Economics - Arnott and McMillen - Chapter 15

C H A P T E R F I F T E E N Urban Transport Economic Theory 15.1 INTRODUCTION Although the transportation sector constitutes a small share of total production (about 3 percent of GDP in the United States), transportation costs play a critical role in the formation and workings of cities.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 16

C H A P T E R S I X T E E N Urban Passenger Travel Demand 16.1 INTRODUCTION The idea of tolling roads to reduce traffic congestion was suggested back in 1920. For several decades, road pricing was largely dismissed as impractical and publicly unacceptable

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A Companion to Urban Economics - Arnott and McMillen - Chapter 17

C H A P T E R S E V E N T E E N Urban Transportation and Land Use 17.1 INTRODUCTION This chapter is an introduction to the economics of the connection between urban transportation and land use. The nature of the transportation system strongly influences the patterns of land use in an urban area.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 18

C H A P T E R E I G H T E E N Urban Transport Policies: The Dutch Struggle with 18.1 INTRODUCTION Transport is characterized by various market failures that are of particular importance in urban settings. A basic market failure concerns environmental externalities, such as pollution and noise

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A Companion to Urban Economics - Arnott and McMillen - Part 5

P A R T V Urban Public Economics The central issues in public economics – the form of government, the method of taxation, and decision-making on public projects – have been at the center of public debate at least since the dawn of history

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A Companion to Urban Economics - Arnott and McMillen - Chapter 19

C H A P T E R N I N E T E E N Financing Cities 19.1 INTRODUCTION In 1904, St Louis, Missouri hosted the World’s Fair. The seven-month fair included exhibits from 62 countries and had an attendance of over 2 million visitors. At the time of the Fair, St Louis itself had a legitimate claim to being one of the premiere cities in the USA.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 20

C H A P T E R T W E N T Y Strategic Interaction among Governments Strategic interaction among governments has recently become a major focus of theoretical and empirical work in public economics. One branch of the literature analyzes strategic interaction due to various kinds of “spillovers.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 21

C H A P T E R T W E N T Y - O N E Property and Land Taxation 21.1 INTRODUCTION Local governments in the United States and elsewhere rely heavily on property taxation to finance their expenditures. This state of affairs is not surprising, because the property tax enjoys several advantages over other taxes.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 22

C H A P T E R T W E N T Y - T W O A Theory of Municipal Corporate Governance with an Application to LandUse Regulation In the United States, neither the political left nor the political right have much use for the thousands of local governments that employ more than half of America’s government workforce.

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A Companion to Urban Economics - Arnott and McMillen - Part 6

P A R T V I Urban Labor Markets and Macroeconomics Urban economists have a longstanding interest in the workings of urban labor markets in general and in the problem of unemployment in particular. Unemployment is far from an urban problem

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A Companion to Urban Economics - Arnott and McMillen - Chapter 23

C H A P T E R T W E N T Y - T H R E E Urban Labor Markets 23.1 INTRODUCTION Why should we care about urban labor markets? To some this might seem like a rhetorical question, since it is difficult not to include urban areas when studying labor markets.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 24

C H A P T E R T W E N T Y - F O U R A Primer on Spatial Mismatch within Urban Labor Markets 24.1 INTRODUCTION Taken together, these features raise the obvious question of whether the relatively poor labormarket outcomes of blacks are related to the distances that exist between their homes in the central city and new jobs in the suburbs.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 25

C H A P T E R T W E N T Y - F I V E Urban Labor Economic Theory 25.1 INTRODUCTION In the United States, it is generally observed that unemployment is unevenly distributed both within and between metropolitan areas. In particular, in most cities, the unemployment rate is nearly twice as high downtown as in the suburbs

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A Companion to Urban Economics - Arnott and McMillen - Chapter 26

C H A P T E R T W E N T Y - S I X Macroeconomic Analysis Using Regional Data: An Application to Monetary Policy 26.1 INTRODUCTION Increasingly, macroeconomists have come to recognize that subnational economies, such as those of regions and urban areas, are useful laboratories for examining theory and policy.

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A Companion to Urban Economics - Arnott and McMillen - Chapter 27

C H A P T E R T W E N T Y - S E V E N Measuring and Analyzing Urban Employment Fluctuations 27.1 INTRODUCTION CITIES ARE NOT JUST LITTLE VERSIONS OF THE NATION National economies experience cyclical behavior; they rise and fall, have booms and recessions. From this, we can make the obvious inference that the geographical components of a national economy

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A Companion to Urban Economics - Arnott and McMillen - Part 7

P A R T V I I Quality of Life Urban areas both attract and repel people. Cities offer high-paying jobs, parks, museums, nightlife, and a seemingly infinite variety of consumer goods. They also offer crime, pollution, noise, difficult commutes, crowds, a reduced sense of community

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A Companion to Urban Economics - Arnott and McMillen - Chapter 28

C H A P T E R T W E N T Y - E I G H T Measuring Quality of Life Life is good when quality of life is high. To many of us, an ideal quality of life index would measure a person’s overall well-being; that is, an individual’s total utility. An ideal index would depend upon things that money can buy.

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