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.

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 environment, and how this is related to prices of land.
• Is familiar with basic models for analysing the local impact of exogenous shocks.

Skills

The student:

• Is able to use economic theory to explain patterns of urban centres, 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

BØA203 Microeconomics and BØA118 Macroeconomics, or similar.

Teaching methods

Teaching Methods: The course employs a combination of asynchronous lectures, synchronous virtual discussions, and collaborative online group projects. Lectures will be available as pre-recorded videos, supplemented by live Q&A sessions. Group assignments will be facilitated through digital collaboration tools to enhance interactive learning.

Compulsory learning activities

Participation in an online group assignment is mandatory. The assignment will be submitted electronically, with feedback provided through the learning management system. Students with previously accepted assignments may complete the compulsory assignments with an updated version of the one previously accepted.

Assessment

Written school exam, 4 hours, 100%

Grades A-F

The exam builds on the syllabus and the work done with portfolios.

Examination support material

All calculator models are allowed, with the following exceptions

• The calculator should not be able to send/receive information
• The calculator must not be able to process symbolic mathematical expressions
• The calculator may not be plugged into any electrical outlets
• The calculator must be noise free

https://www.hvl.no/en/hvl-students/examinations/examination-support-material/

More about examination support material

Course reductions

• SØ6-2001 - By- og regionaløkonomi - Reduction: 7.5 studypoints