The University of British Columbia

Sauder School of Business

Commerce 306: Urban Land Economics
Winter 2, 2016/2017

Professor Sanghoon Lee

Office: HA 277.
Office Hours: TBA, or by appointment.
Email: sanghoon.lee@sauder.ubc.ca

Class time and location:

Section 201: 2:00 pm to 3:30 am Tue Thu in Henry Angus 037
Section 202: 3:30 am to 5:00 pm Tue Thu in Henry Angus 037
Class website: http://connect.ubc.ca

Text:
Lecture notes will be posted online after each lecture.
The following textbooks are optional and only for reference. They are not required for exams and
problem sets.
o Helsley, R. (2003) Urban and Real Estate Economics. Available from Sauder Real Estate
Division (HA 247).
o OSullivan (2006) Urban Economics 6th edition, McGraw-Hill Higher Education (On reserve
at David Lam library).
o DiPasquale and Wheaton (1996) Urban Economics and Real Estate markets. (On reserve at
David Lam library).

Grades:
Class participation (10%), problem sets (10%), midterm exam (35%), and final exam (45%).
There will be two problem sets. Refer to the course calendar for distribution and due dates.
The midterm exam will be held on Mar 1, from 7:00pm on LSK 201 for both sections. If you have to
miss an exam, contact Sauder school undergraduate office immediately.
Class participation grade
Depends on class attendance, and the quality and quantity of your participation.
The use of electronic devices (e.g., laptops, tablets, cell phones) is not allowed during lectures.
Any disruptive behavior in class will significantly lower your class participation grade.
To help the instructor remember your names, please place your name tent on your desk during
lectures.

Course Calendar:

Jan 26 Problem set #1 distributed

Feb 2 Problem set #1 due
Feb 20 24 Midterm break (No lectures and office hours)
Mar 1 Midterm exam
Mar 23 Problem set #2 distributed
Mar 30 Problem set #2 due
April 6 Last day of class.
April 10 28 Final exam period

1
Tentative Course Outline

The Four quadrant model

DiPasquale and Wheaton (1996), Chapter 1.

Roback Model
Roback, Jennifer, (1982) "Wages, Rents, and the Quality of Life," Journal of Political Economy,
University of Chicago Press, vol. 90(6), pages 1257-78, December.

Monocentric City Model

Helsley, Chapter 5 and 6.
Helsley, Chapter 10, pages 10.15 10.20.

Regional Economies
Helsley, Chapter 3.

The Role of Cities and City Size

Helsley, Chapter 4.
Lee, Sanghoon. "Ability sorting and consumer city." Journal of Urban Economics 68.1 (2010):
20-33.

Applications of the Monocentric City Model

Monocentric city model with Flexible Technology and Preference
o Helsley, Chapter 6.
Monocentric city model with geographical constraints
o Lecture notes.
Paradise lost paradise regained.

Suburbanization, Subcentres, and Urban Sprawl (if time allows)

Helsley, Chapter 7.

Neighborhood Quality and Choice

Lee, Sanghoon and Lin, Jeffrey, Natural Amenities, Neighborhood Dynamics, and Persistence in
the Spatial Distribution of Income FRB of Philadelphia Working Paper No. 13-48.

Zoning
OSullivan, Chapter 9.

Transportation and Congestion

Helsley, Chapter 9.

Local government and Property Tax

Helsley, Chapter 12.