ØKB2113 Urban and regional economics

Contents and structure

This course begins by discussing how the location decisions of firms depend on transport costs, input prices, market conditions, competition, and access to information. As a natural extension, central place theory is presented, related to a discussion of possible explanations to the emergence of clusters of industrial activities. As a next step, the focus is on bid rent curves, land use, and housing market conditions in urban areas. It is also a central part of the course to discuss the local impact of different kinds of exogenous shocks. This analysis is made within the framework of economic base modeling and regional input-output models. Finally, regional labor market theory and models of spatial interaction are used to analyze spatial disparities in wages, unemployment, migration flows, and population growth. Throughout the course, we make extensive use of case studies from south west Norway.

Learning Outcome

Knowledge

The student:

• Understands how different factors influence the location decisions of firms.
• Understands why industrial activities are often clustered, and how geographies are typically organized in a hierarchical order of central places.
• Is familiar with theories of how different activities typically occupy different areas in an urban area, and how this is related to prices of land.
• Is familiar with basic models for analyzing the local impact of exogenous shocks.

Skills

The student:

•  Is able to use economic theory to explain patterns of central places, and has a basic understanding of spatial disparities in land and housing prices within a region.
• Is able to conduct simple analyses of how different kinds of exogenous shocks may affect a region. Such a shock may, for instance, be that a major firm is being closed down or relocated.
• Is able to do simple analyses of how changes in the transportation infrastructure may affect the location decisions of firms, and the pattern of central places in a region.
• Has a basic understanding of problems related to spatial disparities in unemployment, employment, and population growth.

General Competence

The student:

•  Is able to explain the spatial distribution of economic activities in a framework based on a general equilibrium way of thinking.
• Is equipped, overall, with analytical tools providing a firm understanding of key relationships in the economic policy debate related to urban and regional economics.

Entry requirements

None

Recommended previous knowledge

Microeconomics and Macroeconomics

Teaching methods

Lectures and working in groups with portfolio.

Compulsory learning activities

Group assignment. Acceptance of the portfolio applies for the present term. Students with accepted portfolio from previous years do a reduced and simplified version of the current portfolio.

Assessment

Written exam, 4 hours, 100%

Grades A-F

The exam builts on the syllabus and the work done with portifolios.