Regional and Urban Economics (MA)

Course Description

The course covers key topics in economic geography, regional growth and convergence, regional development policy, urban development and city structure, the role of transportation and infrastructure, and industrial clustering. Examples will come from the European Union, other developed countries as well as less developed countries in Eastern Europe and Asia.

The aim of this course is to present the key economic models and empirical evidence for regional and urban development as well as transportation policies. The course will discuss a few models in detail, several empirical applications as well as actual policy interventions.  Topics of the course should enlighten the mechanics of agglomeration of people and business and hence, raise awareness of potential benefits and pitfalls of regional development policies. Development of cities will be discussed along with features of urbanization and transport and housing policies. Empirical tools such as GIS software will be presented.

Syllabus – issues to be covered by weeks

 1.      Introduction Economics of space and location

2.      Insights from classic economic geography; the role of space and distance- (von Thünen model)

3.      Economic Geography – (Krugman model). Extensions of the Krugman model. Policy applications.

4.      Transportation, infrastructure and policy- impact on regions and cities

5.      Factors of regional growth (innovation and agglomeration)

6.      Regional Policy: Regional convergence - theory and evidence; EU institutions and political economy of development

7.      Agglomeration and performance of firms; Clusters – theory, evidence and policy

8.      Measuring industrial concentration. Introduction to mapping software and GIS

9.      Urbanization, sprawl, urban externalities. Crime in the city. Political economy of cities

10.  Spatial equilibrium model with migration and rents (Rosen-Roback model)

11.  The economics of real estate

Textbook / Required readings

1.      Brakman, W., H. Garretsen and Ch. van Marrewijk, 2009, The new introduction to geographical economics, CUP 2009 [Selected chapters]

2.      Breinlich, H, G. Ottaviano and J.Temple: Regional growth and regional decline in Handbook of Economic Growth, Volume 2, edited by Philippe Aghion and Steven N. Durlauf (2014)

3.      DiPasquale, Denise  and William C. Wheaton 1996: Urban Economics and Real Estate Markets.

4.      European Commission: EU Cohesion policy report, Brussels

5.      Glaeser, E, 2010 The Triumph of the City, Penguin Press

6.      O’Sullivan, Arthur 2009: Urban Economics, McGraw-Hill

+ Selected articles and policy reports