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 ...
More
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.
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/9780691126852.003.0006
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter examines social interactions in human capital spillovers by focusing on spatial patterns in productivity, wages, and incomes, with particular emphasis on whether spatial concentration ...
More
This chapter examines social interactions in human capital spillovers by focusing on spatial patterns in productivity, wages, and incomes, with particular emphasis on whether spatial concentration causes higher productivity. It begins with a discussion of aggregative spatial measures, such as economic activity at the level of states, regions, and counties in comparison with the smaller scale of cities and their neighborhoods. It then considers the interdependence between spatial interactions and spatial economic activity, the implications of spatial equilibrium for the urban wage premium, and human capital spillovers in microneighborhoods and in synthetic neighborhoods. It also shows how differences in patterns of productivity across locations and at different scales of spatial aggregation may be rationalized in terms of simple models of social interactions.Less
This chapter examines social interactions in human capital spillovers by focusing on spatial patterns in productivity, wages, and incomes, with particular emphasis on whether spatial concentration causes higher productivity. It begins with a discussion of aggregative spatial measures, such as economic activity at the level of states, regions, and counties in comparison with the smaller scale of cities and their neighborhoods. It then considers the interdependence between spatial interactions and spatial economic activity, the implications of spatial equilibrium for the urban wage premium, and human capital spillovers in microneighborhoods and in synthetic neighborhoods. It also shows how differences in patterns of productivity across locations and at different scales of spatial aggregation may be rationalized in terms of simple models of social interactions.
