Economics 201 – Principles of Macroeconomics



Economics 354 – Urban and Real Estate Economics

Fall 2016 – Class meets TBD

Instructor: Dr. Robert F. Salvino

Office: Wall 301 – J

Office Number: 843-349-2719

Office Hours: TBD

E-mail: rsalvino@coastal.edu

Required Text: Urban Economics, 8th Ed. By Arthur O’Sullivan.

Email Requirements: I will periodically send messages via your coastal email address. It is your responsibility to check your email. You must have internet access. The university provides this if you do not have your own personal access.

Catalog Description: (Prereq: ECON 202: Microeconomics or ECON 101) 3 credit hours. Fall or spring semester.

Urban economics is the study of the location of economic activities. This location-based approach makes it a fundamental basis for the study of real estate and the development and change of places. In this course you will analyze economic issues of cities and regions and various policies that have been implemented around the country and throughout the world to deal with certain economic issues of growth and development, with an emphasis on residential, commercial, and industrial real estate uses.

Instructor’s Teaching Philosophy for the Course: I aim to present the material to you in the clearest, most interesting manner. I am more than happy to assist you when you have questions regarding the material. I welcome class discussion, so do not be afraid to ask questions or offer comments in class. You may also ask questions before or after class and during office hours; by no means be afraid to ask questions. I want this course to be enjoyable and informative. Most importantly I want you to develop skills which will be useful throughout your life.

General Course Objective: Urban economics is the study of the location of economic activities. This location-based approach makes it a fundamental basis for the study of real estate and the development and change of places. We will focus our effort on analyzing the spatial relationships between economic units and activities. The course is divided into three sections. The first section explores the historical origins of cities, an origin which still impacts cities and regions in our own hometowns and throughout the world. The second part develops the basic economic model of an urban area. The final section examines economic issues of cities and regions and various policies that have been implemented around the country to deal with certain economic issues of growth and development, with an emphasis on residential, commercial, and industrial real estate uses.

Assignments, Exams and Grading: Grades will consist of 4 parts:

1. In-class Midterm – 35%

2. Group Project (Details attached) – 20%

3. Mini Assignments (Homeworks, Quizzes, Presentations) – 10%

4. Cumulative Final – 35%

Student Instructional Objectives: Upon completion of this course, a student should be able to:

1. Discuss the difference between the political boundary limit of cities and the

economic boundary of cities, and implications of the same.

2. Become familiar with the language of urban economics.

3. Describe the evolution of cities, from simple trade cities to the diverse cities of today.

4. Explain agglomeration economies and the impact on real estate development across housing, commercial, and industrial uses of property.

5. Determine optimal location for a firm based on market versus resource orientation.

6. Derive and apply an algebraic model of market areas based on key determinants.

7. Discuss market versus centrally-planned approaches to regional economic development.

8. Explain intuitively the concept of land rent, the bid rent curve, and the application to land use patterns.

9. Explain the patterns of land use in a monocentric city.

10. Discuss pros, cons, and causes of suburbanization, sometimes referred to as suburban sprawl.

11. Interpret and predict economic outcomes that may result from various types of land use policies.

12. Apply the basic principles discussed above to various specific challenges faced in urban economies, such as transportation congestion, crime, poverty, etc.

Course Outline and Learning Outcomes: (This is a flexible outline. As we move along, changes may become necessary).

Section 1 -- THE ORIGINS OF CITIES

Answers the questions: Why do cities develop? Where do cities develop? How many cities develop? The answers are theoretical, but we finish the section by using historical experience to validate the theoretical answers.

Chapter 1: Introduction

Chapter 2: Why Do Cities Exist?

Chapter 3: Why Do Firms Cluster?

Chapter 4: City Size

Chapter 5: Urban (and Regional) Growth

Section 2 – PATTERNS OF LOCATION AND LAND USE IN URBAN AREAS

The section introduces the notion of land rents. It then uses them to create the monocentric city model. Once that is done we’ll discuss the rise of the suburbs at the expense of the city, finishing up with a look at the determinants of urban growth.

Chapter 6: Urban Land Rent

Chapter 7: Land Use Patterns

Chapter 8: Neighborhood Choice

Chapter 9: Zoning and Growth Controls

Section 3 – POLICY ISSUES CONCERNING THE URBAN ECONOMY

This section discusses various policy issues and their unique way of affecting urban and regional economies. We’ll start with the issues of local governance, showing how governments function at the local (city) level. Then we’ll move into the various issues of housing, poverty, education, transportation, and crime. As we discuss each issue, we’ll look at some programs that have been developed to combat the issue at hand and discuss the success/failures of such programs in attempting to achieve their goals.

Chapter 15: The Role of Local Government

Chapter 16: Local Government Revenue

Chapter 13: Why is Housing Different

Chapter 14: Housing Policy

Chapter 10: Externalities from Autos

Chapter 11: Mass Transit

Chapter 12: Crime

Section 4 – CLASS PRESENTATIONS (Last 2 weeks of class)

The instructor reserves the right to make changes to this syllabus with respect to course material and assignments.

DESCRIPTION OF GROUP PROJECT

Your group will pick a major US city for your project. Each member of your group will be responsible for a different section of the paper:

Sections:

1. History—What are the origins of the city? When did it gain a significant population? Is it on a waterway? What industries were important to its early development? The goal here is to think about why cities form and what reasons are particularly relevant to your city.

2. Housing—How expensive is housing in your city? Is there adequate low income housing (what is adequate)? What are some policies in place to deal with affordable housing? Are the neighborhoods racially integrated?

3. Land Use—What pattern of land use exists in your city? Does it follow the moncentric city model? If not, why? (for example, geography)? What kinds of zoning has the city used? What industries are located where and how does this relate to land values? Are there any land-use controversies?

4. Suburbia—Examine the relations between the suburbs and the central city. Are the suburbs bedroom communities or edge cities? Are industries moving out of the center city and into the suburbs? How is the central city dealing with this issue? Are there big tax differences? What about public services?

5. Policy Issue—What’s a major policy issue facing your city that is not covered in the aforementioned categories? What is the government doing about the problem you have identified? What do citizens feel needs to be done?

I will meet with each group immediately after the midterm to check your progress. The group must be formed within the first 2 weeks of class, and no groups may choose the same city.

Details about Individual (You) Contribution and Grading: In the second week of the course I will provide rigorous details concerning grading and how we will make sure freeriders don’t get free rides!

This will be fun!

Academic Integrity: Do not cheat. See the student handbook for the university policy on cheating. Do not risk it. I will not tolerate it.

Attendance: Strongly encouraged. Exams come from my lecture notes in addition to the textbook. A failing grade will be assigned to those students not attending 75% or more of the regularly scheduled classes.

Withdrawal Policy: See the student handbook for the university withdrawal policy. It is the student’s responsibility to withdraw if so desired.

Mission:

The mission of the E. Craig Wall Sr. College of Business Administration is to educate each of our students to have the qualities and attributes essential to his/her progressive and continuing development throughout careers in private, public, and non-profit organizations in a globally competitive and diverse environment.

Vision 2015:

The Wall College of Business will be recognized as a school of choice for value added undergraduate and masters level business programs based in public universities in the Carolinas and Mid-Atlantic region of the United States.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download