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Preface
T his book is designed for a course in urban economics, the discipline that lies at the
intersection of geography and economics. Economics is the study of choice, explor-
ing the decisions of optimizing households, firms, governments, and other organiza-
tions. Urban economics places these choices in a geographical context.
•• A household chooses the utility-maximizing residential location.
•• A firm chooses the profit-maximizing production site.
As we’ll see throughout the book, the incorporation of locational concerns into mod-
els of optimization behavior provides important insights into the nature of cities and
the causes of urban problems such as poverty, congestion, segregation, and crime.
The geographical perspective also helps us evaluate the merits of alternative policies
to address these urban problems.
The book is organized into five parts. Part I introduces the field of urban eco-
nomics and reviews six key concepts of microeconomics that are used repeatedly
throughout the book. Part II explores a variety of market forces that cause firms and
people to cluster in cities of various size and scope. Part III looks at the spatial or-
ganization of cities, exploring the economic and public-policy forces that determine
the spatial distribution of activity within cities. Part IV explores the two components
of the urban transportation system—cars and roads, and public transit. Part V looks
at local government, exploring the rationale for local government in a federal system
of government, and taking a closer look at two particular public goods—education
and public safety.
The text is designed for use in undergraduate courses in urban economics and
urban affairs. It could also be used for graduate courses in urban planning, public
policy, and public administration. All of the economic concepts used in the book
are covered in the typical intermediate microeconomics course. For readers whose
exposure to microeconomics is limited to an introductory course—or readers could
benefit from a review of microeconomics concepts—Chapter 24 (“Models of Micro-
economics”) provides a review of the key concepts developed in an intermediate
course.
vii
viii Preface
The text has been thoroughly revised to provide a clear and concise presentation of
the field of urban economics. While the overall sequence of topics in the book has
not changed, the changes in individual chapters are substantial and too numerous to
list. The best way to get a sense of the changes is to consult the Table of Contents.
WEB SITE
The web site for the book www.mhhe.com/osullivan9e has color versions of the maps
in the book, PowerPoint presentations, and lecture notes.
Acknowledgments
I am indebted to many people who read the book and suggested ways to improve
the coverage and the exposition. In particular I would like to thank those instructors
who participated in surveys and reviews that were indispensable in the development
of the Ninth Edition of Urban Economics. The appearance of their names does not
necessarily constitute their endorsement of the text or its methodology.
ix
x Acknowledgments
Suparna Chakraborty
Alan Day Haight
Dept. of Economics and Finance,
SUNY–Cortland
Zicklin School of Business,
Baruch College, CUNY
Bríd Gleeson Hanna
Rochester Institute of Technology
Brian J. Cushing
West Virginia University
Julia L. Hansen
Western Washington University
Maria N. DaCosta
University of Wisconsin–Eau Claire
Daryl Hellman
Joseph Daniel Northeastern University
University of Delaware
Barry Hersh
Minh Quang Dao Steven L. Newman Real Estate Institute,
Eastern Illinois University Baruch College, City University of New York
xiii
xiv The McGraw-Hill Series Economics
Romer
Advanced Macroeconomics
Fifth Edition
Brief Contents
Preface vii
Acknowledgments ix
Part I
INTRODUCTION AND KEY CONCEPTS 1
Chapter 1 Introduction 3
Chapter 2 Key Concepts of Urban Economics 10
Part II
MARKET FORCES IN THE DEVELOPMENT OF CITES 29
xv
xvi Brief Contents
Part III
URBAN LAND USE AND HOUSING 139
Part IV
URBAN TRANSPORTATION 285
Part V
LOCAL GOVERNMENT, EDUCATION, AND CRIME 323
Index 423
Contents
Preface vii
Acknowledgments ix
Part I
INTRODUCTION AND KEY CONCEPTS 1
Chapter 1 Introduction 3
1. Urban Economics and Cities 3
2. Census Definitions 6
Urban Population 6
Metropolitan Area aka Core-Based Statistical Area 8
Principal City 8
References and Reading 9
xvii
xviii Contents
6. Self-Reinforcing Changes 23
Review the Concepts 24
Apply the Concepts 25
Part II
MARKET FORCES IN THE DEVELOPMENT OF CITES 29
3. Babylonia 132
The Ecological Setting 133
Religious Beliefs 133
Religious Offerings and Temple Enterprises 134
Transactions and Writing 135
References and Reading 137
Part III
URBAN LAND USE AND HOUSING 139
NUGATOR.
SONG.
LINES
LIBERIAN LITERATURE.
The shipping list for August, exhibits eleven arrivals, and six
departures—that for April, five arrivals, and three departures—for
February, 1835, six arrivals, and four departures—for October, three
arrivals, and two departures. In the August number, are four distinct
paragraphs, each mentioning a ship arrived with emigrants to the
colony.
"The case, however," says the editor, "is not exactly parallel:
Freetown and the whole colony of Sierra Leone, ever since their
establishment, have been under the British flag, and as such,
considered a member of the British empire—and therefore, its
destruction, it might be argued, was perfectly in unison with the
established principles of war. Ours is an experiment for political
existence;—having a distinct and peculiar flag, owing allegiance
to no government, but to that which is represented by the flag
that floats over Liberia.
"We recollect having read, that at the time the great Navigator
Captain Cook, was on his voyage of discovery, war broke out
between England and France, and it was requested that Capt.
Cook, should the enemy fall in with him, be allowed an
unmolested passage. The French king replied, that he warred
not on science, nor with the principles of humanity; and that an
expedition undertaken for the benefit of all, should never meet
obstruction from the flag of France."
"To Liberia's honor be it trumped, that for ten gallons sold in the
Colony four months back, there is not one now. There are a few
that advocate the cause of alcohol; but they cannot support their
opposition long. Public opinion is issuing her imperious edicts,
and every opposer will soon be awed into silence."
This fact is found stated in the hand writing of Mr. Fox, on a blank
leaf of a copy of Gibbon's History of the Decline and Fall of the
Roman Empire, which was purchased after Mr. F's death, at a sale
of his effects. The anecdote is followed by these lines, also in Mr. F's
hand writing.
STATIUS.
CHAPTER VIII.
I was struck at once by the innate honor and Virginian feeling of the
man; and throwing the pistol aside, I tendered him my hand,
expressing at the same time my regret in having acted so
indiscreetly.
"Why do you arrest me?" continued I. "It was an open duel, and Mr.
Ludwell is not dead."
"Is that then the case?" he replied. "Will you pledge me your honor
that such is the truth? I was told that it was an unfair duel, and I have
put myself to great inconvenience to arrest you."
I gave the pledge required, and I was immediately released from the
grasp of the Commonwealth; her chivalric man of law professing
himself satisfied of my innocence, complimenting me on being a
gentleman, and wishing me good night with a profound and dignified
bow. I was in no humor to moralize on this singular scene; yet I could
not forbear to smile at this strangest of all paradoxes—that he who
was prepared to enforce the duelling law, should be so far elevated
above its vulgar penalty, that he could at pleasure either neutralize
its severity, or trample on its express ordinances, lending a
credulous heart to the dreamy nonsense of chivalry, and a deaf ear
to the trumpet-tongued voice of Be it enacted. Such is public opinion,
and such are laws; when in conflict, a Mezentian union—when acting
in harmony, the firmest and most durable base for the fabric of
government.
Pursuing my course, I fortunately encountered Scipio, who was
going to the college with his accustomed budget of letters, and
dismounting him, with orders to go and attend the sick couch of
Arthur, I took his horse, and rode rapidly on to Chalgrave. The night
wore sullenly and gloomily away, and ere morning, one of those fast,
yet light snow-storms, which rush on with a momentary though
softened fierceness, had thrown a spotless mantle around the trees,
the hills and plains of Virginia. I passed two or three of our negroes
on the skirts of the plantation, standing with slouched hats and
folded arms, like so many statues of ebony on a marble floor. 'Tis
then that melancholy spreads its deepest gloom over a Virginian
farm—a solitude fearful, still, and echoless—while all nature bows to
its stern influence. The cattle are gathered to the farm-pen, to
ruminate over a rasping shuck, or a marrowless corn-stalk. From a
pool in the stable yard, a dense and curling vapor overshadows a
motley group of ducks and geese, who are quarrelling and
floundering in undisputed possession of their odorous empire; while
the lengthened face of the prisoned plough-horse takes a more pallid
hue from the sympathy of melancholy, and is protruded on the scene
like that eternal spectre of death which is ever flitting athwart the
path of life. Within the house there is a confused hurrying to and fro
of menials in search of wood, carpets, and rugs, while the mistress
fairly frets herself into philosophy amid the snow, mud, and her own
contradictory orders. A glance from the window will disclose a crowd
of negroes collected around the wood-yard, waiting to carry the logs
cut by one, who with a heavy whirl of his ponderous axe, and a loud
moan, scatters his wounded chips at every stroke. He is then on the
crest of the highest wave of vanity, and will ever and anon rest his
axe to tell of the broad clearings which have opened beneath his
giant arm. I looked on this quiet and familiar scene with an aching
eye and a throbbing heart; yet I was soothed into peace by that
witching spell which spreads its empire from "Indus to the Pole." It
was home—that spot over whose fairy circle my heart, like the
gnomon, had dialled all its sunlit hours of joy and happiness; and in
the gushing memory of childhood's romance, I almost forgot that the
stain of blood was on my hands.
I did not disturb the family until they were seated at breakfast; and in
reply to my mother's inquiries concerning Arthur's health, I hesitated
not to relate to her the whole detail of the tragic meeting. Lucy
entered the room ere I had finished my sad narrative, and catching
the truth of my tale, suddenly stared at me with a full and lustreless
eye, and looking up for a moment, fell with an hysteric shriek on the
floor. My mother's stern pride subdued her swelling feelings, and
rising from her seat, with a starting tear in her eye, she led Lucy from
the room. Frederick remained cold and unmoved, throwing his fork
into his plate, and playing with his tea-spoon with an air of frigid
indifference. My uncle alone advanced to me, and seizing my hand,
exclaimed in a generous though quivering voice, "I will not forsake
you, my dear boy! You have been indiscreet and passionate, but
your honor is untainted! I knew that you could not wilfully kill Arthur.
Come with me; an express shall be sent to the college instantly. The
odds are greatly in favor of his recovery. I have in the library a table
of fifty duels, prepared by my pen, and strengthened by my
experience. Out of that number but four were killed, and ten
wounded. There is only one bad sign in the whole affair, and that is
the fact that Arthur fell too soon. I have known many a man carry two
balls in his body before he would droop. No wadding entered his
body, for my pistols do not bear it; and you may hope for the best."
"Why, ma'am, there is not a horse on the land fit to ride. Mass
Charles sent the mare out of the county on yesterday to Col. C.'s for
a pointer puppy, and as the boy did not come back in time, he has
sent another on the black horse to look for him. The chariot horses
Mass Charles sent to the court house, with a barrel of cider royal to
Capt. R.; and Miss Lucy's pony has not got a shoe to his foot."
"Where is the overseer?" said my mother, who was too much
accustomed to scenes of this character to lose any of the calmness
of her temper.