Yannis M. Ioannides
- Published in print:
- 2012
- Published Online:
- October 2017
- ISBN:
- 9780691126852
- eISBN:
- 9781400845385
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691126852.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter explores what the interactions of individuals and firms in their vicinity and in broader communities reveal about the spatial structure of cities as self-organization by agents. It first ...
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This chapter explores what the interactions of individuals and firms in their vicinity and in broader communities reveal about the spatial structure of cities as self-organization by agents. It first introduces a benchmark, the Alonso–Mills–Muth model of a city in its bare essentials, and examines its implications for urban density and the associated pattern of land prices in the case with a predetermined center, the central business district (CBD). It then considers the geometry of spatial equilibrium when there is no predetermined center and social interactions are dispersed, along with the location decisions of firms in urban space, monocentric versus polycentric models of the urban economy, and the Lucas–Rossi-Hansberg models of urban spatial structure with productive externalities. It also analyzes neighborhood effects, urban equilibrium when proximity is a conduit for the transmission of job-related information, and the link between choice of job matching and spatial structure.Less
This chapter explores what the interactions of individuals and firms in their vicinity and in broader communities reveal about the spatial structure of cities as self-organization by agents. It first introduces a benchmark, the Alonso–Mills–Muth model of a city in its bare essentials, and examines its implications for urban density and the associated pattern of land prices in the case with a predetermined center, the central business district (CBD). It then considers the geometry of spatial equilibrium when there is no predetermined center and social interactions are dispersed, along with the location decisions of firms in urban space, monocentric versus polycentric models of the urban economy, and the Lucas–Rossi-Hansberg models of urban spatial structure with productive externalities. It also analyzes neighborhood effects, urban equilibrium when proximity is a conduit for the transmission of job-related information, and the link between choice of job matching and spatial structure.
