URBAN GROWTH EXTERNALITIES AND NEIGHBORHOOD INCENTIVES: ANOTHER CAUSE OF URBAN SPRAWL?*

ABSTRACT This paper suggests a cause of low density urban development or urban sprawl that has not been given much attention in the literature. There have been a number of arguments put forward for market failures that may account for urban sprawl, including incomplete pricing of infrastructure, environmental externalities, and unpriced congestion. The problem analyzed here is that urban growth creates benefits for an entire urban area, but the costs of growth are borne by individual neighborhoods. An externality problem arises because existing residents perceive the costs associated with the new residents locating in their neighborhoods, but not the full benefits of new entrants which accrue to the city as a whole. The result is that existing residents have an incentive to block new residents to their neighborhoods, resulting in cities that are less dense than is optimal, or too spread out. The paper models several different types of urban growth, and examines the optimal and local choice outcomes under each type. In the first model, population growth is endogenous and the physical limits of the city are fixed. The second model examines the case in which population growth in the region is given, but the city boundary is allowed to vary. We show that in both cases the city will tend to be larger and less dense than is optimal. In each, we examine the sensitivity of the model to the number of neighborhoods and to the size of infrastructure and transportation costs. Finally, we examine optimal subsidies and see how they compare to current policies such as impact fees on new development.     

TESTING URBANIZATION ECONOMIES IN MANUFACTURING INDUSTRIES: URBAN DIVERSITY OR URBAN SIZE?

ABSTRACT Whether urbanization economies stem from urban diversity or urban scale is not clear in the literature. This paper uses the 2004 China manufacturing census data and tests simultaneously the effects of urban size and industrial diversity on firm productivity, controlling for localization economies and human capital externalities. We find that productivity increases with city size—but at a diminishing rate, and the city size effect becomes negative for cities with population over two million. Firms also benefit from industrial diversity, and the strength of such benefit increases with city size but decreases with firm size. The characteristics of agglomeration economies in a transition economy are also discussed.     

WHY ARE URBAN TRAVEL TIMES SO STABLE?

Personal travel time in U.S. urban areas has been stable, clashing with the assertion that urban sprawl greatly lengthens travel. Average commute time rises by 7.7 percent with each cross‐sectional doubling of Metropolitan Statistical Area (MSA) jobs. Using the RELU‐TRAN structural computable general equilibrium model of the Chicago MSA, we simulate the equilibrium effects of a 24 percent population increase projected from 2000 to 2030 by the Chicago Metropolitan Agency for Planning. If no new road capacity is added, then congestion per mile increases. Although the urbanized land area increases by 19 percent, indicating sprawl, the vehicle miles traveled (VMT) per car‐trip decreases by 1.31 percent and the VMT per car‐trip to work decreases by 2.78 percent. Car travel time increases by only 6.25 percent and commuting time by only 4.54 percent, from 30.3 minutes in 2000 to 31.7 in 2030 or 3.4 seconds per year. We further explore the effects of new road capacity, gasoline prices, public transit speed, fuel economy gains, limits on suburban construction, and importantly, the cross‐elasticity of public transit use with respect to car times. The availability of public transportation, economizing on nonwork travel, and land use adjustments that increase job‐residence proximity keep times stable.     

IS THERE A RURAL/URBAN EXPORT GAP?

ABSTRACT.  There is growing concern, particularly in policy circles, that rural manufacturing plants may be less likely to export than metro area plants, and that this may exacerbate the economic difficulties of rural America. A variety of reasons have been offered to expect this export gap, but little empirical work has been done. Using a database of all manufacturing establishments in seven southeastern states and the county and/or zip code-level characteristics of their environment, we find that rural plants are indeed somewhat less likely to export than their urban counterparts. Though there are several explanations for the existence of this gap, factors specific to the rural environment—lower levels of human capital and information externalities—are its largest source.     

DOES DIVERSITY IN URBAN SPACE ENHANCE INTERGROUP CONTACT AND TOLERANCE?

Contemporary urban theory has started to question the elevation of diversity as a panacea for enduring urban problems – segregation, prejudice and intergroup hostility. This critique coincides with an opposite tendency within classic contact theory and research. The latter tradition has developed an increasing enthusiasm for face-to-face interaction. The contact hypothesis, which presupposes established contact, has received conclusive support independent of target groups and contact settings. Research on 'lived diversity', which includes both contact and lack of contact, offers two supplementary insights. It shows, on the one hand, that boundaries are inscribed in social spaces. Physical proximity between ethnic and social groups tends to have a minor effect on interaction. Interaction, on the other hand, is not essential to attitude formation. Both subfields within contact research have confirmed that urban space may act as a catalyst for tolerant attitudes. This observation corresponds with increasing recognition of affective states, such as empathy, anxiety and group threat. Contact research has therefore, in summary, transcended the scope of the contact hypothesis. It has expanded into the realm of urban theory, which foreshadows future collaboration between the two traditions. Some key points for such exchange are suggested at the end of the article. Future research should combine an open-ended approach to casual contact with a diversified conception of diversity and a richer conception of urban space. A move in this direction would leave substantial space for geographical research.     

HOW DO DIFFERENCES IN PROPERTY TAXES WITHIN CITIES AFFECT URBAN SPRAWL?*

ABSTRACT We develop a duocentric‐city model and show that the ratio between the property tax in the suburbs and in the center has an ambiguous impact on the size of the city. We test this model by using a dataset of effective property tax rates which we developed using GIS techniques for central cities and suburbs in 445 urbanized areas. Results from the empirical analyses suggest that a lower property tax rate in the suburbs as compared to the central city is associated with more expansive urban growth and a greater level of decentralization of population and employment.     

WHAT DRIVES THE URBAN WAGE PREMIUM? EVIDENCE ALONG THE WAGE DISTRIBUTION

This paper aims at disentangling the role played by different explanations on the urban wage premium along the wage distribution. We analyze the wage dynamics of migrants from lower to higher density areas in Italy, using quantile regressions and individual data. The results show that unskilled workers benefit more from a wage premium accruing over time, while skilled workers enjoy a wage premium when they migrate as well as a wage increase over time. Further, we find that for unskilled workers the wage growth over time is mainly due to human capital accumulation in line with the “learning” hypothesis, while for skilled workers the wage growth is mainly explained by the “coordination” hypothesis, i.e., cities enhance the probability of better matches between workers and firms.     

VALUING AMENITIES AND DISAMENITIES OF URBAN SCALE: CAN BIGGER BE BETTER?*

ABSTRACT. Considerable effort has been devoted within the recent literature to the valuation of urban amenities and disamenities, as well as to econometric procedures required for the estimation of their implicit market “prices.” This study questions the equilibrium conditions invoked within this literature to derive estimates of marginal willingness to pay, conditions premised upon “perfect” labor mobility among cities. It is shown that such assumptions need not be invoked if one considers the amenity price-mobility relationship directly. This is accomplished by appending a binary migration model to a first-stage wage equation, a procrdure that provides estimates of willingness to pay that can diverge from market-determined implicit prices. Comparison of such values yields important information on the adequacy of market compensation for disamenities (amenities) throughout metropolitan areas.     

LIBERATION OR RESTRICTION? THE JOB AS AN INFLUENCE ON URBAN ENVIRONMENTAL PERCEPTION AND BEHAVIOR

It is because social relations are so frequently and so inevitably correlated with spatial relations; because physical distances so frequently are, or seem to be, the indexes of social distance, that statistics have any significance whatever for sociology. And this is true, finally, because it is only as social and psychical facts can be reduced to, and correlated with, spatial facts that they can be measured at all.¹     

DOES AGGLOMERATION MATTER EVERYWHERE?: NEW FIRM LOCATION DECISIONS IN RURAL AND URBAN MARKETS*

We test whether commonly used measures of agglomeration economies encourage new firm entry in both urban and rural markets. Using new firm location decisions in Iowa and North Carolina, we find that measured agglomeration economies increase the probability of new firm entry in both urban and rural areas. Firms are more likely to locate in markets with an existing cluster of firms in the same industry, with greater concentrations of upstream suppliers or downstream customers, and with a larger proportion of college‐educated workers in the local labor supply. Firms are less likely to enter markets with no incumbent firms in the sector or where production is concentrated in relatively few sectors. The same factors encourage both stand‐alone start‐ups and establishments built by multiplant firms. Commuting decisions exhibit the same pattern as new firm entry with workers commuting from low to high agglomeration markets. Because agglomeration economies are important for rural firm entry also, policies encouraging new firm entry should focus on relatively few job centers rather than encouraging new firm entry in every small town.     

ARE ACADEMIC MODELS OF URBAN SERVICE DISTRIBUTIONS RELEVANT TO PUBLIC POLICY?: LESSONS FROM NEW YORK

Studies identifying and explaining the patterns of service allocations within cities have proliferated in recent years. Methodologies have been refined and the quality of data has improved. Theories of service distribution tested in the research are largely of three types: (1) those that stress “underclass” explanations of racial, economic and/or political discrimination; (2) those that stress service conditions or neighborhood needs; and (3) those that stress bureaucratic decision rules. This article presents findings on the determinants of intra-city distribution patterns for sanitation, fire and police services in New York. These findings highlight some of the difficulties of existing explanations and suggest that a bureaucratic decision rule (BDR) model provides more guidance in interpreting frequently confusing and contradictory results. Though specific rules are hard to identify, use of the BDR model enables more meaningful policy recommendations.     

THE ASSOCIATION BETWEEN URBAN SPRAWL AND OBESITY: IS IT A TWO‐WAY STREET?

ABSTRACT.  We empirically examine the relationship between obesity and urban development patterns where individuals reside. Previous analyses treat urban form as exogenous to weight, and find higher body mass indices (BMI) among residents of areas with sprawl patterns of development. Using samples of recent movers, we find that the causality runs in both directions. Individuals who move to denser locations lose weight. As well, BMI is a determinant of the choice of a dense or sprawling location. In sum, while moving to a dense area results in weight loss, such locations are unlikely to be selected by individuals with high BMI.     

THE SOVIET FAR EAST: A REPORT ON URBAN AND RURAL SETTLEMENT AND POPULATION CHANGE, 1966–1989

This article provides a general overview of trends in urban-rural population change and evolution of the settlement system in the Soviet Far East since 1966, incorporating data published in the recent national statistical yearbooks and the preliminary 1989 census report (Pravda, April 29, 1989, p. 2). Total population in the Soviet Far East increased from 5,435,000 in 1966 to 7,941,000 by January 12, 1989, with the share of the urban population now comprising over three-quarters of the total. Migration patterns into and out of the region are discussed and cities planned for expansion are identified.     

LEGISLATION AND REALITY: THE ARCHAEOLOGICAL EVIDENCE FOR SANITATION AND HOUSING QUALITY IN URBAN WORKERS’ HOUSING IN THE ANCOATS AREA OF MANCHESTER BETWEEN 1800 AND 1950

Abstract

This paper will look at some of the excavated material for British urban workers’ housing, built and occupied during the period 1800 to 1950 in the Ancoats area of Manchester: Ancoats was notorious amongst contemporary writers and campaigners for its poor quality and overcrowded housing. This archaeological evidence has emerged as a result of developer-funded excavations and represents part of a growing body of data collected since 1990 from within many of the great industrial cities of Britain (Glasgow, London and Manchester), as well as excavations in the numerous smaller industrial manufacturing towns of the UK. In this study particular attention is given to the impact of national legislation, private acts and local by-laws aimed at improving industrialised living conditions and the build quality of 19th-century workers’ housing occupied into the 20th century. Using excavated examples from more than 50 houses within Ancoats, it will be argued that archaeology can provide a distinctive and unique view of urban domestic life in the 19th and first half of the 20th century, whilst demonstrating continuity in occupation patterns during this period. The evidence for urbanised, industrial living also compliments the more extensive archaeological studies of manufacturing industry from the period.