URBAN AND REGIONAL ECONOMICS

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1 URBAN AND REGIONAL ECONOMICS Critical Concepts in Economics Edited by Philip McCann Volume I Urban and Regional Labour and Housing Markets Routledge Taylor &. Francis Group LONDON AND NEW YORK

2 VOLUME I URBAN AND REGIONAL LABOUR AND HOUSING MARKETS Acknowledgements Chronological table of reprinted articles and chapters xiii xv General introduction 1 PARTI The individual and inter-regional migration 11 1 The costs and returns of human migration 13 LARRY A. SJAASTAD 2 Migration, age, and education 30 ABA SCHWARTZ 3 Repeat migration in the United States: who moves back and who moves on? 49 JULIE DAVANZO PART 2 Inter-regional migration flows 63 4 Human migration: theory, models, and empirical studies 65 MICHAEL J. GREENWOOD 5 Migration and climate 93 PHILIP E. GRAVES

3 6 The role of equilibrium and disequilibrium in modeling regional growth and decline: a critical reassessment 106 PHILIP E. GRAVES AND PETER R. MUESER 7 Migration and the metropolis: recent research on the causes of migration to southeast England 123 A. J. FIELDING 8 Interregional equilibrium: a transatlantic view 147 ALAN W. EVANS 9 Equilibrium and disequilibrium in migration modelling 157 GARY L. HUNT PART 3 Urban and regional labour markets Local labor markets 175 ROBERT H. TOPEL 11 Confirmations and contradictions: urban commuting journeys are not "wasteful" 207 MICHELLE J. WHITE 12 Regional labor markets and the determinants of wage inequality 221 ROBERT H. TOPEL 13 The dispersion of US state unemployment rates: the role of market and non-market equilibrium factors 230 MARK D. PARTRIDGE AND DAN S. RICKMAN PART 4 Urban amenities, housing and public goods A pure theory of local expenditures 261 CHARLES M. TIEBOUT 15 The estimation of demand parameters in hedonic price models 272 TIMOTHY J. BARTIK 16 Wages, rents, and the quality of life 280 JENNIFER ROBACK 17 On the price of land and the value of amenities 301 PAUL CHESHIRE AND STEPHEN SHEPPARD VI

4 VOLUME II REGIONAL MODELLING AND REGIONAL DYNAMICS Acknowledgements vii PART 5 Spatial econometrics, statistics and interactions 1 18 Probit with spatial autocorrelation 3 DANIEL P. MCMILLEN 19 Local indicators of spatial association - LISA 19 LUC ANSELIN 20 Bayesian estimation of limited dependent variable spatial autoregressive models 48 JAMES P. LESAGE 21 Testing for spatial autocorrelation among regression residuals 68 ANDREW CLIFF AND KEITH ORD 22 The modifiable areal unit problem in multivariate statistical analysis 86 A. S. FOTHERINGHAM AND D. W. S. WONG 23 A statistical theory of spatial distribution models 111 A. G. WILSON PARTS Regional multipliers and input-output analysis A comparison of regional and national technical structures 139 F. HARRIGAN, J. MCGILVRAY, AND I. MCNICOLL 25 The study of regional economic structure using input-output tables 157 R. C. JENSEN, G. R. WEST, AND G. J. D. HEWINGS 26 Hierarchies of regional sub-structures and their multipliers within input-output systems: Miyazawa revisited 178 MICHAEL SONIS AND GEOFFREY J. D. HEWINGS 27 Interregional multipliers: looking backward, looking forward 193 ERIK DIETZENBACHER Vll

5 PART 7 Regional growth and convergence Convergence 217 ROBERT J. BARRO AND XAVIER SALA-I-MARTIN 29 Regional convergence clusters across Europe 245 DANNY T. QUAH 30 Spatial perspectives on new theories of economic growth 255 PETER NIJKAMP AND JACQUES POOT 31 Estimates of time to economic convergence: an analysis of regions of the European Union 289 BERNARD FINGLETON PART 8 Housing and real estate markets The dynamics of the housing market: a stock adjustment model of housing consumption 325 ERIC A. HANUSHEK AND JOHN M. QUIGLEY 33 Labor mobility and the incidence of the residential property tax 346 JAN K. BRUECKNER 34 Housing quality, maintenance and rehabilitation 356 RICHARD ARNOTT, RUSSELL DAVIDSON, AND DAVID PINES 35 Booms and busts in the UK housing market 390 JOHN MUELLBAUER AND ANTHONY MURPHY VOLUME III INDUSTRIAL LOCATION: CLUSTERING, KNOWLEDGE AND INVESTMENT Acknowledgements vii PART 9 Location-theory 1 36 Regional allocation of public investment 3 NOBORU SAKASHITA Vlll

6 37 Location and the theory of production: a review, summary and critique of recent contributions 28 STEPHEN M. MILLER AND OSCAR W. JENSEN 38 On Hotelling's "Stability in competition" 41 C. D'ASPREMONT, J. JASKOLD GABSZEWICZ, AND J.-F. THISSE 39 Rethinking the economics of location and agglomeration 47 PHILIP MCCANN 40 The maximal covering location problem 67 RICHARD CHURCH AND CHARLES REVELLE PART 10 Innovation, knowledge and clusters Geographic localization of knowledge spillovers as evidenced by patent citations 89 ADAM B. JAFFE, MANUEL TRAJTENBERG, AND REBECCA HENDERSON 42 R&D spillovers and the geography of innovation and production 110 DAVID B. AUDRETSCH AND MARYANN P. FELDMAN 43 Localised knowledge spillovers vs. innovative milieux: knowledge "tacitness" reconsidered 126 STEFANO BRESCHI AND FRANCESCO LISSONI PART 11 Clusters and agglomeration Contrasts in agglomeration: New York and Pittsburgh 151 BENJAMIN CHINITZ 45 Growth in cities 162 EDWARD L. GLAESER, HEDI D. KALLAL, JOSE A. SCHEINKMAN, AND ANDREI SHLEIFER 46 Industrial development in cities 188 VERNON HENDERSON, ARI KUNCORO, AND MATT TURNER 47 Industrial clusters: complexes, agglomeration and/or social networks? 210 IAN R. GORDON AND PHILIP MCCANN IX

7 48 Nursery cities: urban diversity, process innovation, and the life cycle of products 237 GILLES DURANTON AND DIEGO PUGA PART 12 Regional trade, money and investment Regional problems are "balance-of-payments" problems 275 A. P. THIRLWALL 50 The treatment of money in regional economics 287 SHEILA C. DOW 51 Second-best congestion pricing: the case of an untolled alternative 301 ERIK VERHOEF, PETER NIJKAMP, AND PIET RIETVELD 52 Spillovers and the locational effects of public infrastructure 325 MARLON G. BOARNET 53 Public infrastructure investments, productivity and welfare in fixed geographic areas 346 ANDREW F. HAUGHWOUT VOLUME IV URBAN AND REGIONAL STRUCTURE AND GROWTH Acknowledgements vii PART 13 The spatial distribution of activity 1 54 An economic theory of central places 3 B. CURTIS EATON AND RICHARD G. LIPSEY 55 Interaction in an urban system: aspects of trade and commuting 23 JOHN B. PARR 56 Geographic concentration in U.S. manufacturing industries: a dartboard approach 45 GLENN ELLISON AND EDWARD L. GLAESER 57 Testing for localization using micro-geographic data 82 GILLES DURANTON AND HENRY G. OVERMAN

8 PART 14 Growth and size distribution of cities Zipf's law for cities: an explanation 125 XAVIER GABAIX 59 Productivity and the density of economic activity 152 ANTONIO CICCONE AND ROBERT E. HALL 60 Cities and skills 178 EDWARD L. GLAESER AND DAVID C. MARE PART 15 New economic geography Increasing returns and economic geography 205 PAUL KRUGMAN 62 Globalization and the inequality of nations 222 PAUL KRUGMAN AND ANTHONY J. VENABLES 63 Agglomeration and trade revisited 243 GIANMARCO OTTAVIANO, TAKATOSHI TABUCH1, AND JACQUES-FRANCOIS THISSE 64 Economic geography and international inequality 274 STEPHEN REDDING AND ANTHONY J. VENABLES PART 16 Urban economics Income and urban residence: an analysis of consumer demand for location 311 WILLIAM C. WHEATON 66 The transition of land to urban use 328 RICHARD J. ARNOTT AND FRANK D. LEWIS 67 The fundamentals of land prices and urban growth 338 DENNIS R. CAPOZZA AND ROBERT W. HELSLEY Index 350 XI

Modern Urban and Regional Economics

Modern Urban and Regional Economics SECOND EDITION Philip McCann OXFORD UNIVERSITY PRESS Contents List of figures List of tables Introduction xii xiv xvii Part I Urban and Regional Economic Models and