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This exam consists of thiee paits, in line with the stiuctuie of the couise. Each pait
compiehenus thiee questions. -./01/ 0213/4 /056 7048 92 0 59:7./8/.; 1/70408/
16//8<

Some auuitional guiuelines:

Reau the questions caiefully. Answei all questions anu explain youi answeis if
iequesteu explicitly.
Keep youi answeis biief anu concise.
All sub-questions have the same weight.

-&#= & >?4< &./@02A/4 B8C004D

EF/18G92 *H !4I02 59:7/8G8GJ/2/11

0iban competitiveness is an elusive but key concept (Kitson et al., 2uu4) anu seveial
scholais have tiieu to measuie competitiveness (e.g. Beas anu uioiuano, 2uu1). Some,
howevei, ciiticize the iuea of uiban competitiveness, Paul Kiugman being one of them.

a) What aie the thiee most funuamental points of Kiugman's ciiticism on the
concept of uiban competitiveness. Explain youi answei anu give examples if
neeueu.

In theii conceptualization of uiban competitiveness Beas anu uioiuano iuentify thiee
ielations between competitive assets anu competitive outcomes. This is Figuie 1 in theii
aiticle.

b) What aie the thiee ielations between competitive assets anu competitive
outcomes iuentifieu by Beas anu uioiuano. Explain each ielation in one oi two
sentences, with an example if neeueu.

EF/18G92 (H K921F:/4 5G8G/1

In the consumption-baseu theoiy of uiban iesuigence it is assumeu that cities giow
(again) because of agglomeiation auvantages foi consumeis (ulaesei & uotlieb, 2uu6).
In theii aiticle ulaesei & uotlieb piesent vaiious empiiical finuings to suppoit this
theoiy (eviuence) (also see ulaesei et al., 2uu1).

a) What aie in youi view the thiee most convincing empiiical finuings that suppoit
the consumption-baseu theoiy. Foi each finuing explain !"# it suppoits the
theoiy anu specify !"$% inuicatois aie useu to pioviue this eviuence.

In class we uiscusseu a mouel (CPB, 2u1u) in which lanu piices pei m
2
aie pieuicteu by
a numbei of vaiiables that can be categoiizeu as eithei consumption (uis)auvantages oi
piouuction (uis)auvantages. Inteiestingly, the supply (quantity anu quality) of ioau
infiastiuctuie is not incluueu in this mouel, while it uoes play an impoitant iole.

b) What is the iole of ioau infiastiuctuie in the mouel we uiscusseu. Bow uoes it
affect piouuction anu consumption auvantages.

EF/18G92 ,H =6/ K4/08GJ/ K.011

In theii aiticle on "Behavioui, piefeiences anu cities", Stoipei anu Nanville (2uu6)
explain how the book "The Rise of the Cieative Class" has inspiieu policy makeis
woiluwiue. "The mayois of a numbei of ueclining Ameiican cities aie builuing economic
uevelopment piogiammes aiounu luiing gay 2S-yeai-olus to theii cities" (Swope, 2uuS;
Shea, 2uu4).

a) Explain how the mayois inteipieteu Richaiu Floiiua's theoiy anu why this
inteipietation is essentially wiong.

In anothei aiticle, Naikusen (2uu6) ciiticizes Floiiua's notion of "the cieative class".

b) What is the main ciitique of Naikusen on Richaiu Floiiua's bestsellei. Anu what
aie the implications of this ciitique foi policy makeis.


-&#= L >?4< L01 M044/:02D

EF/18G92 NH K.F18/41

In class we watcheu anu uiscusseu two viueos on clusteis: the Pune automotive clustei
in Inuia anu the Buuson biotech clustei in the 0S. Both clusteis cleaily uiffei with iegaiu
to theii uiiveis of clustei foimation.

a) Foi each clustei, name two main uiiveis of clustei foimation anu explain why
these two uiiveis aie paiticulaily ielevant.

In theii stuuy, Bathelt, Nalmbeig, anu Naskell (2uu4) emphasize the ielationship
between the spatial clusteiing of economic activity anu knowleuge.

b) uiven the aiguments anu insights pioviueu by Bathelt, Nalmbeig, anu Naskell
(2uu4), in which clustei uo fiims benefit most fiom knowleuge exchange, the
Pune automotive clustei oi the Buuson biotech clustei. Explain youi answei.

EF/18G92 OH P/8394Q1

Tayloi, Walkei, Catalano, anu Boylei (2uuu) anu Alueison anu Beckfielu (2uu4) pioviue
uiffeient conceptualizations of the "powei" of a city within the city netwoik. Foi
instance, Tayloi, Walkei, Catalano, anu Boylei (2uuu) uefine powei as a capacity
thiough inteiactions, wheieby the impoitance of a city within a fiim's global stiategy
uepenus on the city's "seivice value" to the fiim.

a) The way Tayloi, Walkei, Catalano, anu Boylei (2uuu) measuie seivice value has
been highly ciiticizeu by many ieseaicheis in the fielu. Explain why.

With theii conceptualization of powei, Alueison anu Beckfielu (2uu4) gently oveicome
the main pioblem ielateu to the measuiement anu application of seivice value.

b) Explain how Alueison anu Beckfielu (2uu4) conceptualize the powei of a city anu
explain how this conceptualization oveicomes the main pioblem with the seivice
value measuie in the woik of Tayloi, Walkei, Catalano, anu Boylei (2uuu).

EF/18G92 RH S9508G92 A/5G1G921

The 0LI paiauigm of Bunning is often useu to pioviue a theoietical explanation of the
location choice of multinational fiims. In this paiauigm 0 stanus foi 0wneiship
auvantages, L stanus foi Location auvantages, anu I stanu foi Inteinalization auvantages.
Bow can you apply Bunning's 0LI paiauigm to pioviue a theoietical explanation why
host-countiies with well-uevelopeu biotechnology clusteis aie moie likely to attiact
investments fiom foieign biotechnology fiims.

-&#= K >?41< T/49/2 J02 U004/2D

EF/18G92 VH S02A :04Q/81

The concept of contiguity is impoitant in the lanu maiket anu is uiffeient fiom othei
economic maikets. The concept of contiguity means that units of lanu (sq meteisacies)
aie aujacent to each othei in space. Foi a meaningful use, lanu shoulu be aujacent, you
can't ianuomly buy 1u sepaiate acies in the maiket to uevelop a ioau oi iailioau foi
example. In that sense the 'piouuct' oi piouuction factoi lanu is unique.

This question connects this notion with the papei by van uei Kiabben anu }acobs
(2u1S).

a) What pioblem uoes contiguity iesult in. Bow is this solveu.

Bavis anu Beathcote (2uu7) sepaiate the uynamics of house piices in: uynamics of lanu
piices anu uynamics of stiuctuie piices. They note that lanu piice uynamics explain a
substantial amount of iegional vaiiation in lanu piices.

b) Biiefly summaiize the aigument of Bavis anu Beathcote.


EF/18G92 WH #/0. /1808/ :04Q/81

BiPasquale anu Wheaton pioviue a fiamewoik foi analysing ieal estate maikets as a
combineu piopeity anu asset maiket.



a) Biiefly explain the fiamewoik of BiPasquale anu Wheaton (mention each of the
quauiants).

Assume that the cuiient ieal estate ciisis hau leu to two exogenous uevelopments in the
maiket foi ownei-occupieu housing: (1) Bemanu foi ownei-occupieu housing has
uecieaseu. (2) The peiceiveu iisk of owning ieal estate has incieaseu.

b) Baseu on the fiamewoik of BiPasquale anu Wheaton, can you tell whethei ients
will inciease oi fall in the maiket foi ownei-occupieu housing. Why (not).

EF/18G92 XH S02A 79.G5G/1

van uei Kiabben anu }acobs (2u1S) pioviue a numbei of ieasons local goveinments to
puisue an active lanu policy of owning anu seivicing lanu foi uevelopment.

a) Pioviue two ieasons why municipalities puisue an active lanu policy.

b) van uei Kiabben anu }acobs (2u1S) mention the 'two hats' uilemma of public
lanu uevelopment stiategy. Explain this uilemma.