14 27 Oct Imperfect Competition: Monopoly X X X 15 1 Nov Imperfect Competition: X X 16 3 Nov Game Theory and Strategic Planning X 17 8 Nov Asymmetric Information and Incentives X X X 18 10 Nov Second Midterm In Planning Economics 19 15 Nov Externalities X X 20 17 Nov Tradable Permits and suburban sprawl X X 21 22 Nov Public Goods and Common Resources X X X 24 Nov Thanksgiving – no class 22 29 Nov Real Estate Valuation X 23 1 Dec Land Rent and Location Theory X X 24 6 Dec Agglomeration and Urban Growth X X 25 8 Dec Urban Growth and State/Local Policy X X X 26 13 Dec Future of Cities in the Economy X X Class 1: Introduction to microeconomics and why it matters for urban planning An introduction to microeconomics and its core principles; main methods and tools of economics
Class 17: Asymmetric information and incentives Asymmetric information; moral hazard and adverse selection in insurance markets and the workplace; principal-agent problems and incentives. Reading: Pindyck and Rubinfeld Ch 17. Podcast: Why Textbook Prices Keep Climbing, Planet Money. Exercises: KW - Ch 20 problems 12, 14. Discussion: Hal Varian, A Bangladesh Bank Relies on Peer Pressure for Collateral, NY Times Assignment: Assignment #7 due 18: Second midterm Class 19: Externalities Positive and negative externalities; remedies involving market incentives and property rights. Reading: KW - Ch 16. Exercises: KW – Ch 16 - problems 2, 6, and 8. Discussion: Guns and Bullets: Can We Tax Our Way to Safety? Taxrates.com Class 20: Externalities (cont); Tradable permits and economics of suburban sprawl Permit auctions to address pollution; the causes of suburban sprawl and appropriate remedies. Reading: Jan Brueckner, “Urban Sprawl: Diagnosis and Remedies” Gordon, Peter and Harry W. Richardson, “Prove it: The Costs and Benefits of Sprawl.” The Brookings Review (1998): 23–25. Discussion: Tradable permits exercise (posted) - prepare auction strategy before class. Class 21: Public goods and common resources Public goods and common resources; the problems they pose for market allocation and policy responses. Reading: KW Ch 17. Exercises: KW - Ch 17 problem 4. Discussion: Congestion in Singapore Assignment: Assignment #8 due 22: Real Estate Valuation Reading: Peter Linneman, “Property-Level Pro Forma Analysis.” John Herbohn and Steve Harrison, “Introduction to Discounted Cash Flow
Analysis and Financial Functions in Excel.” 23: Land Rent and Location Theory Reading: Arthur O’Sullivan, Urban Economics 8/e, chapter 6 Edward Glaeser, “The Economic Approach to Cities,” NBER, pages 1-10. Glaeser, Kahn, and Rappaport, “Why Do the Poor Live in Cities? The Role of Public Transportation,” Journal of Urban Economics. and Coughlin, “An Introduction to Two-Tiered Taxation of Land and Buildings.” Federal Reserve Bank of St. Louis 87 (2005). Assignment: Assignment #9 due 24: Agglomeration and Urban Growth Reading: Quigley, John M., Diversity and Economic Growth.” Journal of Economic Perspectives 12(1998): 127–138. Gerald Carlino, “Three Keys to the City: Resources, Agglomeration, and Sorting.” Business Review 2011. Gerald Carlino, “Beautiful City.” Business Review 2009. Discussion: James Surowiecki, Why Do Companies Like Company? The New Yorker Class 25: Urban economic growth and state and local policy Reading: and Schwartz, “No Easy Answers” Brookings Review Moretti, Enrico. The New Geography of Jobs. New York, NY: Houghton Mifflin Harcourt, 2012. (Chapter 6. Poverty traps and sexy cities). Discussion: Why Did the Job Cross the Road? Planet Money Podcast. Assignment: Assignment #10 due Class 26: Future of cities in the economy Reading: Glaeser, Edward L., “Demand for Density? The Functions of the City in the 21st Century.” The Brookings Review (2000): 12–15. Henderson, Vernon, “Urbanization in Developing Countries.” The World Bank Research Observer 17(2002): 89–112. Greenstone, Michael and Adam Looney, An Economic Strategy to Renew American Communities. The Hamilton Project, Brookings Institution, Oct 2010. “Gaponomics.” The Economist, Mar 2010. Assignment: Take-home final due GRADING CRITERIA