Fall 2010 Syllabus Version 1

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PLA 4151 Economics for Planners

Fall 2010, Tuesday 9-11, 114 Avery HallProf. Smita Srinivas

Columbia University, Urban Planning

Office hours: Wed, 1-3 pm, Buell Hall [email protected],Tel: 212-854-4243.

Teaching Assistants:

Ph.D. students Dan Steinberg [email protected] and Julie Touber [email protected]

PLEASE COME TO THE FIRST CLASS HAVING READ THE ARTICLES AND RELEVANT

CHAPTERS FROM THE ASSIGNED TEXT BOOKS.

Economics for Planners is the required foundation economics course for M.S. students in Columbias

urban planning program and aims to provide the economics basis for planning and policy practicewhether at national, regional, urban, or other scales. Students will come to better appreciate not only the

diverse history of economics and its influence on planning in different parts of the world, but also how

to communicate their economic (or other) plans and practice in their professional lives.

Course description

Governments make constant decisions about cities and regions and the provision of goods and services

which the public sector may directly provide, or a regulated private sector or public-private hybrid maydo so. These goods and services may include the direct or joint provision of physical infrastructure from

housing and transportation to healthcare, and the well-being of residents through the provision,

protection, and regulation of land, employment, health, environment, or other resources.

Markets are a dominant, but not always the only or best form of such allocation or regulation. Planners,governments and the state must constantly make decisions on complex issues about if, when, and how touse market means to achieve certain ends. Planners work in public or private spheres of the economy,

sometimes simultaneously, or across multiple economic zones, scales, and topic areas. Planning also

requires operating in diverse geographic and political contexts to decide national economic development

plans, industry location, inter-jurisdictional employment regulation, highway infrastructure, or ports, ormore localized issues of housing, transport, food or parks availability. Planners, planning, and plans

have often sat within an ideological economic tradition at odds with approaches that favour market

instruments with low regulation. Real-life is not a special case (as many economic textbooks tend tosuggest!), but the basis on which viable, efficient, and equitable economic plans can be constructed,

negotiated, and implemented. This does not mean throwing out abstraction; abstraction can be vital and

appendices of the text and articles will have more formal representation.

There are five main sections to the course: PartI: Basic Microeconomics, Part II: Public economics,

Welfare, and Regulation, Part III: Urban and Regional Economics,Part IV: Public Investment and

Finance, Part V:Special topics. Parts I and II covers the core of market analysis, and themicroeconomics and public economics for state involvement and regulation. Part III consolidates

traditional urban and regional economic themes such as location economics, urban growth, and specific

types of regulation and instruments often used by cityplanners. Part IV consolidates crucial topics in
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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public investment and financing such as discounting, fiscal federalism in taxation, and topics such as

land exactions and user fees. In Part V, students will see select economics topics in games, behavioural

economics, morality, social networks, and experimental economics using different assumptions andmethodologies. These have important planning and policy implications and are increasingly being used

by planners in a wide range of applications.

The course operates in a combination lecture and discussion format. The emphasis will be on thinking

through problems and reasoning step-by-step. The first half of the days session will consist of a lecture

and discussion (approx. 1 hour +) by the professor to introduce the data, theories and historicalbackground to the weeks topics and readings. The remainder of the course will be focused on detailed

in-class, group discussions of theoretical readings and dissection of applied, empirical materials. I may

assign you into groups to debate and discuss some of the readings and applications in class and welcomeyou to the board to think through your ideas. We will very occasionally have a short 10-15 minute Q and

A with an economics visitor (from professionals to thesis students) and read various urban planning

theses or dissertations on economic topics. Questions and items to focus on will be assigned at the end

of each class.

Course format

This is an introductory course which must cover a lot of basics of economics literacy and debate. I

would encourage you to continue with additional courses related to studying development, finance, andthe urban and regional economy. The Urban Planning program offers several electives as do other

programs across campus.


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COURSE REQUIREMENTS

The required textbook:

We will extensively use Neva Goodwin, Frank Ackerman, and Thomas WeisskopfsMicroeconomics in

Context, 2

nd

Edition, M.E. Sharpe. 2009.

Select chapters:

In the urban and regional economic section (Section II our of the V sections), we will also use chapters

from Arthur OSullivans Urban Economics 7th

Ed. 2009, McGraw Hill.

Both books are on reserve in the library, and Goodwin et al. is available in the bookstore for purchase.

If you are having any problems finding either, please contact the TAs.

There are several articles in each section. The goal here is to be able to read an economics, urban andregional economics, or planning journal article, summarize the context, assumptions and limitations, and

understand the basic economics. Read the mathematics where you can, but the goal here is the

economics arguments and assumptions. When there are many articles, I will split them between the class

ahead of time and you will read some but not all the articles. However, you are expected to understandthe core argument in each case even when someone else summarizes them.

Journal articles

Brush Up your mathematics

! We will not have the time for a math refresher here. Refresh your memoryon basic graphs, writing an equation, introductory statistics, and calculus notation. You will be exposed

to different economic methodologies and terminology in the text and readings,

Keeping up:

The course covers a lot of introductory economics for 1 semester of 14 class sessions!There is much to do, and often, we may only touch on a topic. Where possible, we will see applications

in class discussions and in assignments. We will start discussions from the very first class, so keep upwith all readings especially in the early part of the semester when we discuss most foundational theories

and frameworks. I expect students to actively participate and to assist each other by sharing their

reasoning out loud, working together in group discussions and debates, and arguing in a systematic,

engaged, and friendly manner. I provide extra credit (10%) for students who actively link this course tocurrent events and are active discussants. Please bring relevant news items and other information. The

TAs can post these materials from which the class can learn.


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COURSE EXPECTATIONS

PartI: Demand and Supply, Part II: Public economics, Welfare, and Regulation, Part III: Urban and

Regional Economics,Part IV: Public Investment and Finance, Part V: Special topics.

CLASS PARTICIPATION AND DISCUSSION: (10% of grade)

Core courses are enjoyable when the students bring their insights and enthusiasm to discussion. You are

expected to show background preparation and engage in discussions of high quality. Shed yourinhibitions and come to the board to analyze problems.Dont be intimidated. Active class participation

can be an enjoyable way to understand economics. But if I have to call on you by name for participation

in class, you should be doing more!

3 PROBLEM SETS (30% of grade) Students must work individually on these.

There will be 3 individual problem sets (10% of grade each) during the term (one after Part I, one after

Parts II and III, another after Parts IV and V) that will require intelligent use of data and comfort withgraphs, equations, and applications. They are meant to test economic concepts with real-life.

MID-TERM EXAM (30% of grade)(mid-October) This is an in-class, closed-book exam that tests you on your understanding of economic

concepts covered and requires you to take apart and analyse at least one planning problem.

3. FINAL EXAM: (30% of grade)-This is an in-class exam. The final exam covers all materials covered

in the course. The exam date and time will be announced.

POLICY FOR LATE ASSIGNMENTS: A drop of a half-letter grade for eachlate day. Exceptions will

be made for medical or family emergencies. All assignments are due at the start of the class session. Ifyou anticipate being late in handing in an assignment, please speak with me ahead of time instead ofmissing a class session in order to finish the piece.

SUMMARY

1. PARTICIPATION (10% of grade)2. ASSIGNMENTS (3 of them, 10% each, Total 30% of grade)3. MID-TERM EXAM (30% of grade)4. FINAL EXAM: (30% of grade)Avoid semester overload and anxiety towards the end. I am always available for questions and

conversations. My office hours are Wed 1-3 pm, do drop in. The TAs for the course are Dan Steinbergand Julie Touber, Ph.D. students in the Urban Planning program. They are helpful and friendly and will

be available to help with assignments, any changes to or availability of readings, postings on

Courseworks, and to assist group discussions within or outside class. They will post regular hours when

they are available.


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Fall 2010 COURSE SCHEDULE (Tuesdays 9-11)

September 7 (Class 1) Planning context, micro fundamentals and supply and demandPART I: Microeconomics basics (2 classes)

September 14 (Class 2) More production, consumption, supply, demand

September 21 (Class 3) Markets and Market Failures-1

Part II: Public Economics, Welfare, and Regulation (3 classes)

September 28 (Class 4) Markets and MarketFailures-2

October 5 (Class 5) Market Failures and Beyond: Regulation and Planning Problem Set 1 given

October 12 (Class 6) Location Theories and Economic Rationale of Cities-1 Problem Set 1 due

Part III: Urban and Regional Economies (4 classes)

October 19 (Class 7) Location Theory and the Economic Rationale of Cities-2

October 26 (Class 8) Mid-term EXAM

November 2 Election Day holiday (NO CLASS)

November 9 (Class 9) Land-rent and Land-use Problem Set 2 given

November 16 (Class 10) Fiscal Federalism Problem Set 2 due

IV: Fiscal Federalism, Public Investment and Finance Basics (3 classes)

November 23 (Class 11) Public Expenditure and Investment analysis

November 30 (class 12) Public Revenue Problem Set 3 given

December 7 (Class 13) Special topics-1 Problem Set 3 due

Part V: Special topics and planning applications (2 classes)

December 14 (Class 14) Special topics -2 and wrap up. Last Day of Class

December Final EXAM TBA


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PART I: Microeconomics basics

(2 Classes)

Planners often have to manage the economys development and the efficient and equitable provision of

vital amenities such as housing, transport, employment, food, and land. Their actual jobs are more

complex than simply equating supply with demand and meeting numbers. They have to assess thecontext of the market and often work to arrange new markets, or assist those for whom amenities are

unaffordable or otherwise difficult to access. Planners also often find other means of assisting residents

beyond supply and demand which we can discuss.

This section discusses the fundamentals of exchange and its supporting institutions in an abstract and

also real economies. We will place exchange and other aspects of economic organization within an

urban context and how markets are a specific form of economic institution. We relate this to planningand planners choices.

By the end of this section, students should be able to describe a market, alternative organizations other

than markets, explain Pareto efficiency, utility theory and its planning implications, marginal costpricing, identify various roles for planners, draw demand and supply curves on various topics, identify

what instruments planners might have at their disposal on those demand and supply curves (e.g. for

housing, transport, or employment), understand who produces/supplies and how, whoconsumes/demands and how, and what planners roles are in mediating the consumption with the

production.

Class 1 (September 7):

Planning context, micro fundamentals and supply and demand

(Please read and come prepared for first day of class)

Goodwin, Neva et al.Microeconomics in Context 2nd Ed. Armonk, NY: M.E. Sharpe, 2009.Chapters 1 and 2. Also glance over Chapters17, 18, 19. We will return to these last three at the end of

the term.

Jacobs, Jane. The Economy of Cities. New York, NY: Random House, 1969.Chapter 1 Cities First

Lambooy, Jan and Frank Moulaert, The economic organisation of cities. An institutionalistperspective.International Journal of Urban and Regional Research, Vol. 20, 2, (1996): 217-37.

Schlack, Robert F. Urban Economies and Economic Heterodoxy.Journal of Economic Issues24, no.1(1990): 17-47.

Whitley, Richard.Dominant Forms of Economic Organization in Market Economies. Organization

Studies15, no.2 (1994): 153-82.

Sen, Amartya.Capitalism Beyond the Crisis, The New York Review of Books56, no.5 (March 26,

2009). Available at:


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More production, consumption, supply, demand

Production: Firms, Production functions, Cost functions, Profit Maximization, Marginal Costs,

Economies of Scale and Scope.

Goodwin, Neva et al.Microeconomics in Context 2nd Ed. Armonk, NY: M.E. Sharpe, 2009.

Chapter 3Market Institutions

Chapter 4Supply and DemandChapter 5Working with Supply and Demand

Chapter 7: Production Costs (including Appendix)

Demand, Cconsumption, Choice


Chapter 10 (Consumption and the Consumer Society, including Appendices)

Markusen, Ann and Greg Schrock. Consumption-Driven Urban Development.Urban Geography30,

No. 4 (2009): 344-67.

Mokhtarian, Patricia and Ilan Salomon. How Derived is the Demand for Travel? Some Conceptual and

Measurement Considerations, in Transportation Research Part A: Policy and Practice 35(2001): 695-719.

PART II: Public Economics, and Planning Regulation

(3 classes)

Planners need to understand the public sector and its interface with the private sector (whether for profit,or non-profit). Furthermore, we need to understand the broad scope of regulation and failures of the

market, what could make governments more effective, and when alternatives to market and government

failure approaches are necessary. We will consider the tenets of Pareto efficiency and how they relate to

cities.

We will discuss in more detail how markets may be far from ideal institutions and how they embody

certain types of power in economic relations that makes the rationale for planning vary. Markets mayfail for several reasons: traditionally, they have been listed as natural monopolies, information

asymmetries, public goods, externalities, and incomplete markets. We will discuss meanings and uses of

these concepts and limitations of their use in planning.

We will also discuss (see general reading) whether planners are market planners, or whether planning

is more than planning markets. Can and should markets and the economy be planned and regulated?

Under what conditions? With what instruments? This section also introduces the student briefly toinformation and political effects on economies and their planning context. We will discuss the provision

of public goods and externalities (both bad and good such as pollution and knowledge spillovers) as

examples of when markets do not work well. You will also see briefly the context for negotiation and
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bargaining (which well see more of in Section V) that underlie the Coase theorem and means to deal

with externalities.

This section includes regulation, a crucial issue for planers of all stripes. You will discuss the goals of

regulation, different types of regulations relevant to planners at multiple levels of government. We

discuss briefly non-statutory systems, self-regulation, planning instruments such as investmentregulation, development approvals, zoning and sprawl controls, industry incentives, subsidies and taxes,

employment regulation from hire and fire to street licensing and informality, pollution controls, price

controls etc.

By the end of this section, students must be able to identify what markets are good for, under what

conditions they fail, and be ready to describe what market power entails in a real economy and how itmay be manifested in the built environment. Students must be able to broadly analyze the effect of taxes

as a welfare instrument and be able to graph taxation, price controls, effects of monopolies, and other

types of imperfect competition. They must be able to briefly describe the political context for marketstructure, restructuring, and regulation and the effect of price changes through various instruments.

Markets, Plans versus Markets, Beyond Markets?

General reading:


Chapter 19 (Market Systems and Normative Claims, 1, 2)

Arrow, Kenneth. The Organisation of Economic Activity: Issues Pertinent to the Choice of Market vs.

Non-Market Allocation, in Public Expenditures and Policy Analysis, Ed. R.H. Haveman and J.Margolis. Markham Press, Chicago, 1970.

http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=1221850

Wolf, Charles.Markets or Government: Choosing between Imperfect Alternatives. Cambridge, MA: The

MIT Press, 1993.


Nelson, Richard. On the Complexity and Limits of Market Organization. The Review of International

Political Economy10, no.4 (2003): 697-710.

Richardson, Harry W., and Gordon, Peter. Market Planning Oxymoron or Common Sense? Journal

of the American Planning Association59, no. 3 (Summer1993): 347-352.

Banerjee, Tridib. Market Planning, Market Planners, and Planned Markets.Journal of theAmerican Planning Association, 59, no.3 (Summer 1993):353-360

Thompson, Gregory. Planning Beats the Market: The Case of Pacific Greyhound Lines in the 1930s.

Journal of Planning Education and Research13, no.1 (October 1993): 33-49.
http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=1221850http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=1221850http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=1373441http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=1373441http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=1373441http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=1221850


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Markets and Market Failures-I

Market Power oligopolies and natural and locational monopolies

Goodwin, Neva et al.Microeconomics in Context 2nd Ed. Armonk, NY: M.E. Sharpe, 2009.Chapter 11 (Markets without Market Power) 3.2-3.5 Consumer and Producer Surplus, Taxation, Rent

Control

Chapter 12 (Markets with Market Power) including Appendix.

Information Asymmetries

Goodwin, Neva et al.Microeconomics in Context 2nd Ed. Armonk, NY: M.E. Sharpe, 2009.Re-read Chapter 2 Economic Actors and Organizations (sections 1,2.1-2.6)

Public Goods, Club Goods, Merit Goods, brief mention game theory and Pareto optimality again.

Public Goods


Chapter 7 (Production Costs, 2.5)

Chapter 8 (Production Decisions, 3.5)

Pigou, A.C. Some Aspects of Welfare Economics. The American Economic Review, Vol. 41, No.

3.(1951): 287-302.

Bator, Francis."The Anatomy of Market Failure," Quarterly Journal of Economics, 72, no.3 (1958):

351379.

APPLICATION: LIGHTHOUSES AND OPEN SPACE

Coase, Ronald H. The Lighthouse in Economics,Journal of Law and Economics,Vol. 1 (October

1974): 357-376.

Lai,Lawrence, et al. The Political Economy of Coase's Lighthouse in History (Part I): A Review of theTheories and Models of the Provision of a Public Good. The Town Planning Review, Vol. 79, No. 4

(2008): 395-425.

Bates Laurie and Rexford Santerre, The Public Demand for Open Space: The Case of Connecticut

Communities.Journal of Urban Economics, 50, issue 1 (2001): 97-111.

DISCUSSION ITEMS: GARBAGE, PUBLIC HEALTH, INFORMAL HOUSING-items separately and

combined.

Stiglitz, Joseph. The Private Uses of Public Interests: Incentives and Institutions.Journal of Economic

Perspectives12 (Spring 1998): 3-22.
http://instruct1.cit.cornell.edu/Courses/econ335/out/bator_qje.pdfhttp://www.jstor.org.ezproxy.cul.columbia.edu/action/doBasicSearch?Query=au%3A%22Lawrence+W.+C.+Lai%22&wc=onhttp://www.jstor.org.ezproxy.cul.columbia.edu/stable/40112767?&Search=yes&term=lai&list=hide&searchUri=%2Faction%2FdoAdvancedSearch%3Fq0%3Dlai%26f0%3Dau%26c0%3DAND%26q1%3D%26f1%3Dall%26c1%3DAND%26q2%3D%26f2%3Dall%26c2%3DAND%26q3%3D%26f3%3Dall%26wc%3Don%26ar%3Don%26sd%3D%26ed%3D%26la%3D%26jo%3D%26dc.PublicPolicy%2526amp%253BAdministration%3DPublic%2BPolicy%2B%2526amp%253B%2BAdministration%26Search%3DSearch&item=11&ttl=11&returnArticleService=showArticlehttp://www.jstor.org.ezproxy.cul.columbia.edu/stable/40112767?&Search=yes&term=lai&list=hide&searchUri=%2Faction%2FdoAdvancedSearch%3Fq0%3Dlai%26f0%3Dau%26c0%3DAND%26q1%3D%26f1%3Dall%26c1%3DAND%26q2%3D%26f2%3Dall%26c2%3DAND%26q3%3D%26f3%3Dall%26wc%3Don%26ar%3Don%26sd%3D%26ed%3D%26la%3D%26jo%3D%26dc.PublicPolicy%2526amp%253BAdministration%3DPublic%2BPolicy%2B%2526amp%253B%2BAdministration%26Search%3DSearch&item=11&ttl=11&returnArticleService=showArticlehttp://www.jstor.org.ezproxy.cul.columbia.edu/stable/40112767?&Search=yes&term=lai&list=hide&searchUri=%2Faction%2FdoAdvancedSearch%3Fq0%3Dlai%26f0%3Dau%26c0%3DAND%26q1%3D%26f1%3Dall%26c1%3DAND%26q2%3D%26f2%3Dall%26c2%3DAND%26q3%3D%26f3%3Dall%26wc%3Don%26ar%3Don%26sd%3D%26ed%3D%26la%3D%26jo%3D%26dc.PublicPolicy%2526amp%253BAdministration%3DPublic%2BPolicy%2B%2526amp%253B%2BAdministration%26Search%3DSearch&item=11&ttl=11&returnArticleService=showArticlehttp://www.jstor.org.ezproxy.cul.columbia.edu/stable/40112767?&Search=yes&term=lai&list=hide&searchUri=%2Faction%2FdoAdvancedSearch%3Fq0%3Dlai%26f0%3Dau%26c0%3DAND%26q1%3D%26f1%3Dall%26c1%3DAND%26q2%3D%26f2%3Dall%26c2%3DAND%26q3%3D%26f3%3Dall%26wc%3Don%26ar%3Don%26sd%3D%26ed%3D%26la%3D%26jo%3D%26dc.PublicPolicy%2526amp%253BAdministration%3DPublic%2BPolicy%2B%2526amp%253B%2BAdministration%26Search%3DSearch&item=11&ttl=11&returnArticleService=showArticlehttp://www.jstor.org.ezproxy.cul.columbia.edu/action/doBasicSearch?Query=au%3A%22Lawrence+W.+C.+Lai%22&wc=onhttp://instruct1.cit.cornell.edu/Courses/econ335/out/bator_qje.pdf


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Chen, Lincoln C., Tim G. Evans and Richard A. Cash. Health as a Global Public Good, in Global

Public Goods, International Co-operation in the 21stCentury, Inge Kaul, Isabelle Grunberg and Marc A.

Stern, Oxford University Press and United Nations Development Program, New York, 1999.http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=7691978

Arrow, Kenneth J. Uncertainty and the Welfare Economics of Medical Care.American EconomicReview53, no.5 (1963):941973.


Markets and MarketFailures-2

Externalities, Social Optima and Game Theory

Hardin, Garrett. The Tragedy of the Commons, Science, Vol.162 (1968, December 13): 1243-1248,

December 13.

Coase, Ronald. The Problem of Social Cost.Journal of Law and Economics, Vol.3 (October 1960): 1-

44.

Farrell, Joseph. Information and the Coase Theorem, Journal of Economic Perspectives, Vol. 1, no.2

(Autumn 1987): 113-129.

Baumol, William J. On Taxation and the Control of Externalities.American Economic Review62, no.

3 (June 1972): 307-322.

DISCUSSION: POSITIVE EXTERNALITIESLocation and Innovation: The New Economic Geography of Innovation, Spillovers, and Agglomeration

Clark, Maryann P. Feldman, and Meric S. Gertler. The Oxford handbook of economic geography,

Oxford University Press, USA; 2003.

Chapter 19 (373-94)http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=2971196

Powers, John. Untraded Interdependencies and the Software Industry in Beijing and Dublin.Columbia Urban Planning Ph.D. dissertation(Abstract, Introduction, and Conclusions only).

DISCUSSION BASICS OF GAME THEORY AND BARGAINING-PLANNING ISSUES
http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=7691978http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=7691978http://sws1.bu.edu/ellisrp/EC387/Papers/1963Arrow_AER.pdfhttp://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=2971196http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=2971196http://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=2971196http://sws1.bu.edu/ellisrp/EC387/Papers/1963Arrow_AER.pdfhttp://clio.cul.columbia.edu:7018/vwebv/holdingsInfo?bibId=7691978


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Class 5 (October 5):

Market Failures and Beyond: Regulation and Planning


Regulation and planning instruments

Chapter 9 (Distribution, Exchange, Transfer),Chapter 17 (The Public Purpose Sphere: Governments and Nonprofits),

Chapter 18 (The Variety of Economic Systems, section 3)

Arrow, Kenneth, J. Social Responsibility and Economic Efficiency, Public Policy, Vol. 21 (1973):303-317. Reprinted inReadings in Public Sector Economicsedited by S. Baker and C. Elliott,

Lexington. MA: D. C. Heath and Company, pp. 26-37.


Arrow, Kenneth J. Limited Knowledge and Economic Analysis. The American Economic Review64,

Issue 1 (March 1974): 1-10.

Lai, Lawrence Wai-Chung. Libertarians on the Road to Town Planning, Town Planning Review73,No. 3 (Jul., 2002): 289-310.

Cowell, Richard. Market regulation and planning action: burying the impact of electricitynetworks?, Planning Theory & Practice5, no.3(2004): 307-325.

Pothukuchi, Kameshwari and Kaufman, Jerome L. The Food System: A Stranger to the PlanningField.Journal of the American Planning Association, 66: 2(2000): 113 -124.

Siemiatycki, Matti. Delivering Transportation Infrastructure Through Public-Private

Partnerships: Planning Concerns.Journal of the American Planning Association, 76, no. 1(2010): 43-58.

DISCUSSION: ZONING, SPRAWL AND ITS EFFECTS

Brueckner, Jan. Urban Sprawl: Diagnosis and Remedies.International Regional Science Review 23,

no.2 (2000): 160-171.

Burchell, Robert and Sahan Mukherji. Conventional Development Versus Managed Growth: The Costs

of Sprawl.American Journal of Public Health . 93, no.9 (2003): 1534-1540.

Connerly, Charles. From Racial Zoning to Community Empowerment: The Interstate Highway Systemand the African-American Community in Birmingham, Alabama.Journal of Planning Education and

Research 22, no.2 (2002): 99-114.
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Part III: Urban and Regional Economies

(4 classes)

In this section, we devote ourselves to the more localised and spatial aspects of economies. These

include real context to the earlier microeconomic discussion of factors of production such as people,

land, and investment capital, and more planning context to the earlier public economics and regulationsection.. We will briefly cover how theories of urban economic structuring and transformation, location

theories and and several growth theories.

We will address why cities exist, economic assumptions, types of cities, firms, production, industry, andlocation decisions, localization and urbanization economies, central place theory, city size, technological

change, urban and regional growth theories. We will see what different growth theories assume and

imply.

For land-rent and land-value, we will look at bid-rent curves and various applications including housing

(you will see more of housing in later courses, this is a short introduction only). Since were interested in

how economic issues affect urban form, we study the monocentric model of urban land use and itsinsights and limitations, multicentric cities, urban growth, sprawl and planning instruments to limit city

size and form such as zoning, taxation etc.

Using the microeconomics of Section I, the public considerations and regulatory economics of Section

II, and by the end of this section III, students should be able to debate the major differences in firm

choices for location and inputs, between growth theories, describe both economic and builtmanifestations of these theories, and the effect of production structure on how economic development

and clustering occurs. Students must be able to argue why sprawl occurs and how it may be addressed,

how to use mathematical language and some graphing to describe planning and policy effects on land-rents and land-use. The section will end with a brief discussion of topics in transportation, labour and

housing markets which you will continue to learn more about in your later courses.


Economic Rationale for Cities, Location, Growth-1

Goodwin et al. Microeconomics in Context 2nd Ed., Chapter 8 (Production Decisions, 3, 4),Chapter 16 (The Business Sphere: For-Profit Firms, 5)

OSullivan Urban Economics7th Ed. Chapters 1,2,3,4,(Introduction and Axioms of Urban Economics,Why do Cities Exist, Why do Firms Cluster? City Size)

Jacobs, Jane. The Economy of Cities. New York, NY: Random House, 1969, Chapters 2,4,5 (How NewWork Begins, How Cities Start Growing, Explosive City Growth)

Also glance through Jacobss Appendices I,II,III,IV and see if you understand the gist of the diagrams.

William Alonso, The Economics of Urban Size, Papers of the Regional Science Association, 26,

(1971): 67-84


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Paul Krugman, Increasing Returns and Economic Geography,Journal of Political Economy, 99,

(1991): 483-499.

Ann Markusen and Helzi Noponen and Karl Driessen. "Trade and American Cities: Who Has the

Comparative Advantage?Economic Development Quarterly, Vol. 11, No. 1 (1997).

Philip McCann and Daniel Shefer. Location, Agglomeration, and Infrastructure. Papers in Regional

Science, 83 (2004): 177-196

Leamer, Edward, and Michael Storper. "The Economic Geography of the Internet Age."NationalBureau of Economic ResearchWorking Paper 8450, August 2001.

Davis, Donald R., and David Weinstein. Bones, Bombs, and Breakpoints: The Geography of EconomicActivity,American Economic Review, 92, no. 5 (2002).

Catherine Hill, Sabina Deitrick, and Ann Markusen Converting the Military Industrial Economy: The

Experience at Six Facilities.Journal of Planning Education and Research, vol. 11 (1991): pp. 19 - 36.

Glaeser, Edward. "The Economics of Location Based Incentives." Discussion Paper 1932. HarvardInstitute of Economic Research, November 2001.

Lester, Richard, ed.Innovation, Universities and the Competitiveness of Regions. Technology ReviewsSeries, Tekes, the National Science and Technology Agency, Government of Finland, 2007.

Francis Owusu and Pdraig Carmody. Competing Hegemons? Chinese versus American Geo-

Economic Strategies in Africa. Political GeographyVol. 26 (2007): 504-524.

Kahn, Matthew E. Green Cities: Urban Growth and the Environment. Brookings Institution Press, 2006.Book is on reserve at Avery Library and available electronically via CLIO.


Economic Rationale for Cities, Location, Growth-2

Goodwin et al. Microeconomics in Context 2nd Ed., Chapter 9 (Distribution: Exchange and Transfer,

section 2).

OSullivan Urban Economics7th

Ed. Chapter 5 (Urban Growth)

Krugman, Paul. "Space: The Final Frontier."Journal of Economic Perspectives(Spring 1998): 161-174.

Edward L. Glaeser and Matthew E. Kahn 2003 Sprawl and Urban Growth, NBER paperhttp://www.owlnet.rice.edu/~econ461/papers/glaeser4.pdf

UNHabitat State of the Worlds Cities 2008-09 Chapters 1.1., 1.2., 1.3 (The Spatial Distribution of the

Worlds Cities, Urban Growth Patterns, Which Cities are Growing and Why).
http://www.owlnet.rice.edu/~econ461/papers/glaeser4.pdfhttp://www.owlnet.rice.edu/~econ461/papers/glaeser4.pdf


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Political Economy of City Sizes and Formation, Vernon Henderson and Randy Becker,Journal of

Urban Economics,Volume 48, Issue 3,(November 2000): 453-484

Colby, Bonnie G. Cap-and-Trade Policy Challenges: A Tale of Three Markets.Land Economics

76, issue 4(2000): 638-658.

Cohen, Barney Urban Growth in Developing Countries: A Review of Current Trends and a Caution

Regarding Existing Forecasts World Development,Vol. 32, No. 1 (2004): 2351.

http://www.iussp.org/Activities/wgc-urb/cohen.pdf

APPLICATION: ENERGY SYSTEMS

Andrews, Clinton J. Energy Conversion Goes Local: Implications for Planners.Journal of the

American Planning Association, 74, issue 2 (2008):231 -254.

Class 8 (October 26)

MID TERM IN CLASS

November 2

NO CLASS *** Columbia Election Day Holidays***

Class 9 (November 9):Land value and Land-Rent


Ed.

Chapter 6,7

William Alonso, A Theory of the Urban Land Market, Papers of the Regional Science Association, 6,

(1960):149-157.

Alex Anas, Richard Arnott, and Kenneth A. Small, Urban Spatial Structure,Journal of Economic

Literature, 36, (1998): 1426-1464.

Borrero Ochoa, Oscar, and Esperanza Duran Trujillo, Effects of Land Policy on the Price of

Undeveloped Urban Land in Colombia. Lincoln Institute of Land PolicyWorking Paper (2010).

Andr, Catherine and Jean-Philippe Platteau. Land relations under unbearable stress: Rwanda caught inthe Malthusian Trap.Journal of Economic Behavior & Organization, Volume 34, Issue 1 (1998): 1-47.

Miezkoswki, Peter and Edwin Mills. The Causes of Metropolitan Suburbanization.Journal of
http://www.sciencedirect.com/science/journal/00941190http://www.sciencedirect.com/science/journal/00941190http://www.sciencedirect.com/science/journal/00941190http://www.sciencedirect.com/science?_ob=PublicationURL&_tockey=%23TOC%236934%232000%23999519996%23291365%23FLP%23&_cdi=6934&_pubType=J&view=c&_auth=y&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=ef84c7420700896160bb01925357f097http://www.sciencedirect.com/science?_ob=PublicationURL&_tockey=%23TOC%236934%232000%23999519996%23291365%23FLP%23&_cdi=6934&_pubType=J&view=c&_auth=y&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=ef84c7420700896160bb01925357f097http://www.iussp.org/Activities/wgc-urb/cohen.pdfhttp://www.iussp.org/Activities/wgc-urb/cohen.pdfhttp://www.lincolninst.edu/pubs/PubDetail.aspx?pubid=1783http://www.lincolninst.edu/pubs/PubDetail.aspx?pubid=1783http://www.lincolninst.edu/pubs/PubDetail.aspx?pubid=1783http://www.lincolninst.edu/pubs/PubDetail.aspx?pubid=1783http://www.iussp.org/Activities/wgc-urb/cohen.pdfhttp://www.sciencedirect.com/science?_ob=PublicationURL&_tockey=%23TOC%236934%232000%23999519996%23291365%23FLP%23&_cdi=6934&_pubType=J&view=c&_auth=y&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=ef84c7420700896160bb01925357f097http://www.sciencedirect.com/science/journal/00941190http://www.sciencedirect.com/science/journal/00941190


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Economic Perspectives 7, 3 (1993): 135-47.

Voith, Richard. Do Suburbs Need Cities?Journal of Regional Science 38, 3 (1998): 445-64.

Wright, John B. and Robert J. Czerniak. The Rising Importance of Voluntary Methods of Land Use

Control in Planning.Journal of Planning Education and Research, 19(2000): 419-423.

Jacobs, Harvey M. The Ambiguous Role of Private Voluntary Methods in Public Land Use Policy: A

Comment.Journal of Planning Education and Research,19 (2000): 424-426.

Nelson, Arthur C. Comment on Voluntary Methods of Land Use Control in Planning,Journal of

Planning Education and Research, 19 (2000): 426.

DISCUSSION TOPICS: EMPLOYMENT, INEQUALITY AND HOUSING

Labour effects on cities, housing, and work


Chapters

International Labour Office (ILO). Women and Men in the Informal Economy: A Statistical picture,

Employment Sector. Geneva: ILO, 2002.

(A little self-reflection) Labour Markets for planners, The Bureau of Labor Statistics released the

Occupational Outlook for Urban and Regional Planners, 2010-2011 Edition.

http://www.bls.gov/oco/ocos057.htm

David M Cutler, Edward DISCUSSIONwww.wiego.orgImpact of the FIFA World Cup and Mega Events on the Urban Working Poor

Glaeser and Jacob L Vigdor, "The rise and decline of the American ghetto," The Journal of Political

Economy, June (1999).

DePasquale, Denise, and William C. Wheaton. Firm Site Selection, Employment Decentralization, and

Multicentered Cities, Chapter 5 in Urban Economics and Real Estate Markets. Englewood Cliffs, NJ:Prentice Hall, 1996.

Habitat International2008 Special Issue Labour in Urban Areas, Vol 32 (2), June (Sp. Ed. EdmundoWerna) (Cases: Kenya, Afghanistan, India, Brazil, Tanzania etc.)

Timothy Smeeding, Poor People in Rich Nations: The United States in Comparative Perspective,

Journal of Economic Perspectives20, Number 1, (Winter 2006):6990.

APPLICATION: CITY BUDGETS AND ATTRACTING BUSINESS, LABOUR, MINIMIZING

HOUSING COSTS
http://www.bls.gov/oco/ocos057.htmhttp://www.wiego.org/http://www.wiego.org/http://www.wiego.org/http://www.bls.gov/oco/ocos057.htm


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APPLICATION: RETURN OF CALL CENTER OUTSOURCING AND OFFSHORING

NPR story. Notice the home-based workers issue.

Housing


Chapter 11 (Markets without Market Power, 3.5 Rent Control)

APPLICATION: Economic views of housing and housing markets (esp. filtering), policy tools --public

provision, vouchers, rent control, rents vs. ownership, cost controls, mortgages, segregation effects.

NEWS ITEM: Bob Lerman and Tom Kingsley, 2010, Double Trouble: Metro Areas Suffering the Worst

Housing Shocks Also Lose the Most Jobs, Urban Institute Metro Institute,

http://metrotrends.org/jobsandhousing.html

Weiping Wu, Migrant Housing in Urban China: Choices and Constraints, Urban Affairs Review, Vol.38, No. 1, (2002): 90-119.

Fawaz, Mona. Contracts and Retaliation: Securing Housing Exchanges in the Interstice of theFormal/Informal Beirut (Lebanon) Housing Market.Journal of Planning Education and Research

(2009): 1-18.
http://metrotrends.org/jobsandhousing.htmlhttp://metrotrends.org/jobsandhousing.htmlhttp://metrotrends.org/jobsandhousing.html


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Part IV: Public Finance: Investment Analysis and Finance

(3 classes)

This is a section that covers many topics and instruments planners use to change cities and regions. Thetools here are also relevant at different levels of government, and used in the private and non-profit

sectors. We summarize the main issues, techniques, and basic vocabulary, approaches, and limitations to

financing and investment.

Class 10 (November 16):

Fiscal Decentralisation: Economics of Federalism, Devolution, Privatization


Chapter 18: The Variety of Economic Systems


Ed. Chapters 15,16 (The Role of Local Government, Local

Government Revenue)

Tiebout, Charles M. A Pure Theory of Local Expenditures,Journal of Political Economy, Vol. 64(1956): 416-424.

Donahue, John D. "Tiebout? Or not tiebout? The market metaphor and America's devolution debate."The Journal of Economic Perspectives, (Fall 1997): 73-82.

Dowding, Keith et al. "Tiebout: A survey of the empirical literature," Urban Studies(May 1994): 767-790.

Burgess, Robin and Nicholas Stern. Taxation and Development,Journal of Economic Literature, Vol.XXXI (June 1993): 796-818.

Buchanan, James. Federalism and Fiscal Equity.American Economic Review, Vol. 40, (1950): 583-599.

Oates, Wallace E. Fiscal Decentralisation and Economic Development.National Tax Journal, Vol. 46,

No. 2 (June 1993): 237-243.

Prudhomme, Remy. The Dangers of Decentralisation. The World Bank Research Observer, World

Bank, Vol. 10. No.2 (August 1995): 201-220.

Inman, Robert and Daniel Rubenfeld. Rethinking Federalism.Journal of Economic Perspectives(Fall1997).

Foster, Kathryn A.Regionalism on Purpose, Policy Focus Report, Lincoln Institute of Land Policy,

2001.

Olowu, Dele and Paul Smoke. Determinants of success in African local governments: an overview,

Public Administration (2006)http://www3.interscience.wiley.com/journal/113450504/abstract
http://www3.interscience.wiley.com/journal/113450504/abstracthttp://www3.interscience.wiley.com/journal/113450504/abstracthttp://www3.interscience.wiley.com/journal/113450504/abstract


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Basic Public Expenditure and Investment analysis

IRR, NPV, discounting, valuation, costs and benefits, non-traded goods, value of life/well being.

Goodwin, Neva et al.Microeconomics in Context 2nd Ed. Armonk, NY: M.E. Sharpe, 2009.Re-read Chapter 6 (Capital Stocks and Resource Maintenance) and read Chapter 14 (Markets for Other

Resources)

Samuelson, Paul. Diagrammatic Exposition of a Theory of Public Expenditure,Review of Economicsand Statistics, Vol. 77 (1955): 350-356. (Abstract, Introduction, and Discussion only. Those who like

math or are curious can read the whole article).

Campen, James T.Benefit, Cost and Beyond, Cambridge, MA: Ballinger Publishing Company, 1986,

Chapters 3-5.

Pohl, G. and D. Mihaljek. Project Evaluation and Uncertainty in Practice: A Statistical Analysis ofRate-of-Return Divergences of 1,015 World Bank Projects. The World Bank Economic Review, Vol. 6,

No. 2 (1992): 255-277.

S. Devarajan, L. Squire, and S Suthiwart-Narueput. Beyond Rate of Return: Reorienting Project

Appraisal. World Bank Research Observer, Vol. 12, 1 (1997): 3546.

Harberger, Arnold C. New Frontiers in Project Evaluation? A Comment on Devarajan, Squire, and

Suthiwart-Narueput, in An Exchange on Project Evaluation from the World Bank Research Observer,

Volume 12, Number 1 (February 1997).

Picciotto, R. Visibility and Disappointment: The New Role of Development Evaluation, in L. Rodwinand D. Schon,Rethinking the Development Experience: Essays Provoked by the Work of Albert O.HirschmanWashington, DC and Cambridge, MA: The Brookings Institution and The Lincoln Institute

of Land Policy, 1994 pp. 210-230.

Cohen, Michael A., Urban Assistance and the Material World: Learning by Doing at the World Bank.Environment and Urbanization, Volume 13, No.1 (April 2001): 37-60.

DISCUSSION:

UN HabitatGuide to Municipal Finance,Human Settlements Finance Tools and Best Practices.
http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808


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Public Finance: Revenue and pricing


Chapter 14: Markets for Other Resources, 2.2. Should Natural Capital be treated differently?)

UN HabitatGuide to Municipal Finance,

Human Settlements Finance Tools and Best Practices Chapter 1 Definition of Municipal Finance and

Objectives of the Guide, Chapter 2 Municipal Finance Issues, Challenges, and Trends, Chapter 3

Principles of Municipal Finance, Chapter 4 Municipal Revenueshttp://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808

Taylor, Brian D. When Finance Leads Planning: Urban Planning, Highway Planning, and MetropolitanFreeways.Journal of Planning Education and Research. 20, 2 (2000): 196-214.

DeCorla-Souza, P. The Long-Term Value of Value Pricing in Metropolitan Areas. Transportation

Quarterly 56, 3 (2002): 19-31.

Weitzman, Martin L. Gamma Discounting.American Economic Review, no. 1 (1999): 260-271.

(Abstract and discussion only. Those who enjoy math can read the entire article).

Kremer, Michael, Jessica Leino, Edward Miguel, and Alix Zwane. Spring Cleaning:

Rural Water Impacts, Valuation and Property Rights Institutions. NBER Working paper#15280, 2010. [http://emlab.berkeley.edu/users/emiguel/miguel_water.pdf]

Taxation

Goodwin, Neva et al.Microeconomics in Context 2nd Ed. Armonk, NY: M.E. Sharpe, 2009.Chapter 9 (Distribution: Exchange and Transfer, sections 1, 3, and 4)

Chapter 11 Markets Without Market Power, reminder: Consumer and Producer Surplus 3.2-3.5

Lindahl. Erik. Just Taxation: a positive solution in Classics in the Theory of Public Finance, R.A.Musgrave and A. T. Peacock (Eds.), Macmillan, London, 1919.

Mieszkowski, Peter. Tax Incidence Theory: The Effects of Taxes on the Distribution of Income,Journal of Economic Literature, Vol. 7 (1969): 1103-1124.

William M. Gentry, Optimal taxation, in The Encyclopedia of Taxation and Tax Policy. Urban InstitutePress, edited by Joseph J. Cordes, Robert D. Ebel, and Jane G. Gravelle, Urban Institute Press, 1999.

Bradford, David F. and Harvey S. Rosen. The Optimal Taxation of Commodities and Income,American

Economic Review, Vol.66, No.2 (May 1976): 94-101.

Fisher, Ronald C. Principles of Tax Analysis, State and Local Public Finance, Irwin Publishers, 1996

pp. 301-323.
http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808


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Indirect Taxes: Sales/VAT, Excise and Trade Taxation

Bird, Richard. A New Look at Indirect Taxation in Developing Countries, World Development, Vol.

XV, No.9 (1987): 1151-1161.

Fisher, Ronald C. Sales and Excise Taxes, State and Local Public Finance, Irwin Publishers (1996):

379-461.

Fisher, Ronald C. Income Taxes, Business Taxes, State and Local Public Finance, Irwin Publishers(1996): 428-461.

Direct Taxes: Taxation of Income, Wealth and other

Lewis, Paul. Retail Politics: Local Sales Taxes and the Fiscalization of Land Use.EconomicDevelopment Quarterly 15:1 (2001).

UN Habitat

Local direct taxation: Land and Property Taxes

Guide to Municipal Finance,Human Settlements Finance Tools and Best Practices Chapter 5 Financing Capital Expenditures

http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808

Dowall, David E. Applying Real Estate Financial Analysis to Planning and Development

Control.Journal of the American Planning Association, 51: 1 (1985): 84-94.

Rosengard, Jay K. Introduction and Synthesis, Property Tax Reform in Developing Countries, Kluwer

Academic Publishers, 1998: 1-30 and 157-187.

Bahl, Roy W. and Johannes F. Linn. Property Tax Systems: Practice and Performance, Chapter 4, Urban

Public Finance in Developing Countries, Oxford University Press, USA, published for the World Bank,

Washington D.C., 1992, pp. 79-122.

Kenyon, Daphne A. The Property Tax-School Funding Dilemma, Policy Focus Report,Lincoln

Institute of Land Policy, 2007http://www.lincolninst.edu/pubs/1308_The-Property-Tax-School-

Funding-Dilemma

Wyatt, Michael D. A Critical View of Land Value Taxation as a Progressive Strategy for UrbanRevitalization, Rational Land Use, and Tax Relief.Review of Radical Political Economics26: 1

(1994): 1-25.

McKenzie, Evan. Planning Through Residential Clubs: Homeowners Associations.Economic Affairs,

Vol. 25, No. 4 (December 2005): 28-31.

http://www.evanmckenzie.com/images/stories/econ_affairs.pdf
http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.lincolninst.edu/pubs/1308_The-Property-Tax-School-Funding-Dilemmahttp://www.lincolninst.edu/pubs/1308_The-Property-Tax-School-Funding-Dilemmahttp://www.lincolninst.edu/pubs/1308_The-Property-Tax-School-Funding-Dilemmahttp://www.lincolninst.edu/pubs/1308_The-Property-Tax-School-Funding-Dilemmahttp://www.evanmckenzie.com/images/stories/econ_affairs.pdfhttp://www.evanmckenzie.com/images/stories/econ_affairs.pdfhttp://www.evanmckenzie.com/images/stories/econ_affairs.pdfhttp://www.lincolninst.edu/pubs/1308_The-Property-Tax-School-Funding-Dilemmahttp://www.lincolninst.edu/pubs/1308_The-Property-Tax-School-Funding-Dilemmahttp://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808


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User charges

Boiteaux. On the Management of Public Monopolies Subject to Prices,Journal of Economic Theory,

Vol.3 (1956): 219-240.

Peterson, George E. Self-Financing Through User Fees, Financing Urban Infrastructure in Less

Developed Countries(Manuscript), USAID, August 1990: 20-29.

WHO User Fees in the health sector of developing countriesWorld Bank User fees and water services

DISCUSSION:

Congestion pricing

Debt financing


Chapter 6 (Capital Stocks and Resource Maintenance, 7)


Human Settlements Finance Tools and Best Practices Chapter 7 Municipal Borrowing and Access to theCapital Market,http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808

Fisher, Ronald C. Borrowing and Debt, State and Local Public Finance, Irwin Publishers, 1996 pp. 235-267.

Davey, Kenneth. Municipal Development Funds and Intermediaries, Background paper for the 1988World Development Report, World Bank, July 1988, pp. 1-62.

Ingrid Gould Ellen, John Napier Tye, Mark A. Willis 2010. Improving U.S. Housing Finance through

Reform of Fannie Mae and Freddie Mac: Assessing the Options, NYU Furman Center for Real Estateand Urban Policy

http://www.urban.org/publications/1001382.html(Read pages 1-10, 25-27 only).

Laura Wolf-Powers,Community Benefits Agreements and Local Government,A Review of Recent

Evidence, Journal of the American Planning Association,Volume76,Issue2 (2010): 141 159.

DISCUSSION

Municipal Bonds and strategies
http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.urban.org/publications/1001382.htmlhttp://www.urban.org/publications/1001382.htmlhttp://www.informaworld.com.ezproxy.cul.columbia.edu/smpp/content~db=all~content=a919481121~frm=titlelink?words=retail%7Cmarkets&hash=2627940420http://www.informaworld.com.ezproxy.cul.columbia.edu/smpp/content~db=all~content=a919481121~frm=titlelink?words=retail%7Cmarkets&hash=2627940420http://www.informaworld.com.ezproxy.cul.columbia.edu/smpp/title~db=all~content=t782043358http://www.informaworld.com.ezproxy.cul.columbia.edu/smpp/title~db=all~content=t782043358http://www.informaworld.com.ezproxy.cul.columbia.edu/smpp/title~db=all~content=t782043358~tab=issueslist~branches=76#v76http://www.informaworld.com.ezproxy.cul.columbia.edu/smpp/title~db=all~content=g920241491http://www.informaworld.com.ezproxy.cul.columbia.edu/smpp/title~db=all~content=g920241491http://www.informaworld.com.ezproxy.cul.columbia.edu/smpp/title~db=all~content=t782043358~tab=issueslist~branches=76#v76http://www.informaworld.com.ezproxy.cul.columbia.edu/smpp/title~db=all~content=t782043358http://www.informaworld.com.ezproxy.cul.columbia.edu/smpp/content~db=all~content=a919481121~frm=titlelink?words=retail%7Cmarkets&hash=2627940420http://www.urban.org/publications/1001382.htmlhttp://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808


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Sclar, Elliott. You Don't Always Get What You Pay For: The Economics of Privatization. Ithaca: Cornell

University Press, 2000: Introduction, Conclusions.

Non-tax revenues

Christine Kessides. Institutional Options for the Provision of Infrastructure, World Bank DiscussionPaperNo. 212, World Bank (1993), pp. 1 - 81.

Gulyani, Sumila et al. Universal (Non)service? Water Markets, Household Demand and the Poor inUrban Kenya. Urban Studies, 42 (2005): 1247-1274

Ahlers, Rhodante. Fixing and Nixing: The Politics of Water Privatization.Review of Radical PoliticalEconomics, 42 (2010): 213

http://rrp.sagepub.com.ezproxy.cul.columbia.edu/content/42/2/213.full.pdf+html

Adler, Moshe. Let the Iraqis Decide What to Privatize, The Washington Post, August 5, 2003

Peterson, George E. The Private Sector Role in Infrastructure Provision,Infrastructure FinanceVol. I:Financing Urban Infrastructure in Less Developed Countries, Urban Institute, 1991: 54 61.

Van der Walle, Nicholas. Privatization in developing countries: A review of the issues, World

Development, 17, 5 (1989): 601-615

Siemiatycki, Matti. Delivering Transportation Infrastructure Through Public-Private

Partnerships: Planning Concerns,Journal of the American Planning Association, 76 (2010): 1, 43-58,http://pdfserve.informaworld.com.ezproxy.cul.columbia.edu/55194_782751733_916731648.pdf

Inter-governmental transfers and other tax reform


Human Settlements Finance Tools and Best Practices Chapter 8 Concluding Comments,http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808

Hamilton, J. The Flypaper Effect and the Deadweight Loss from Taxation,Journal of Urban Economics,Vol. 19 (1986): 148-155.

McLure, Charles E. Tax Competition: Is Whats Good for the Private Goose Also Good for the Public

Gander?National Tax Journal,Vol. 39 (September 1986).

Jenkins, G. Tax Reform: Lessons Learned, Chapter 11 inReforming Economic Systems in DevelopingCountries, Perkins and Roemer (Eds.), HIID, Harvard University Press, 1991.

Bahl, Roy W. and Johannes F. Linn. The Structure of Urban Governance, Chapter 12, UrbanPublic

Finance in Developing Countries, Oxford University Press, USA, published for the World Bank,

Washington D.C., 1992: 385-427.
http://rrp.sagepub.com.ezproxy.cul.columbia.edu/content/42/2/213.full.pdf+htmlhttp://rrp.sagepub.com.ezproxy.cul.columbia.edu/content/42/2/213.full.pdf+htmlhttp://pdfserve.informaworld.com.ezproxy.cul.columbia.edu/55194_782751733_916731648.pdfhttp://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2808http://pdfserve.informaworld.com.ezproxy.cul.columbia.edu/55194_782751733_916731648.pdfhttp://rrp.sagepub.com.ezproxy.cul.columbia.edu/content/42/2/213.full.pdf+html


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Paul Smoke. Improving local infrastructure finance in developing countries through grant-loan

linkages: ideas from Indonesia's water sector,International Journal of Public Administration, 1999.http://www.informaworld.com/index/779920324.pdf

Kelly, Roy. Intergovernmental Revenue Allocation Theory and Practice: An Application to Nepal.Asian Journal of Public Administration, Vol. 21, No. 1 (June 1999): 86-113.

Slack, Enid N. and Richard M. Bird. Local Response to Intergovernmental Fiscal Transfers: The Case

of Colombia. Public Finance, 1983.

PART V: Select Topics and Planning Applications (2 classes)

Behavioural economics and game theory

(e.g.Participation, Negotiation, Power)

Class 13 (December 7):

Special Topics -1

Goodwin, Neva et al.Microeconomics in Context 2nd Ed. Armonk, NY: M.E. Sharpe, 2009.Chapter 2 (Economic Actors and Organizations, 2, 3), Chapter 3 (Market Institutions, 3), Chapter 15

(The Core Sphere: Households and Communities, 4.3, 4.4, 4.5), Chapter 16 (The Business Sphere: For-

Profit Firms 2.2, 2.3, 2.4), Chapter 17 (The Public Purpose Sphere 4.1, 4.2, 4.3), Chapter 10:

Consumption and the Consumer Society (4 and 5), Chapter 18 (The Variety of Economic Systems (4.1,4.2, 4.3), Chapter 19: Market Systems and Normative Claims

Booth, WJ. On the idea of the moral economy,American Political Science Review, 88 (1994): 653-67

Nunn, Nathan. The longterm effects of Africas slave trades. Quarterly Journal of Economics, 123, 1:

2008: 139-176,http://www.mitpressjournals.org/doi/pdf/10.1162/qjec.2008.123.1.139

Carpenter, Jeff, Amrita Daniere and Lois Takahashi. Space, Trust, and Communal Action: Results from

field experiments in Southeast Asia.Journal of Regional Science, 46, 4 (2006): 681-705.

Srinivas, Smita and Judith Sutz. Developing Countries and Innovation: Searching for a New AnalyticalApproach. Technology in Society, Vol. 30 (2008): 129-140.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1099492

Sotarauta, Markku. Power and influence tactics in the promotion of regional development: An

empirical analysis of the work of Finnish regional development officers. Geoforum40 (2009): 895

905.
http://www.informaworld.com/index/779920324.pdfhttp://www.mitpressjournals.org/doi/pdf/10.1162/qjec.2008.123.1.139http://www.mitpressjournals.org/doi/pdf/10.1162/qjec.2008.123.1.139http://www.mitpressjournals.org/doi/pdf/10.1162/qjec.2008.123.1.139http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1099492http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1099492http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1099492http://www.mitpressjournals.org/doi/pdf/10.1162/qjec.2008.123.1.139http://www.informaworld.com/index/779920324.pdf


24/24

24

Lord, Alex. 'The Community Infrastructure Levy: An Information Economics Approach to

Understanding Infrastructure Provision under England's Reformed Spatial Planning System. Planning

Theory & Practice, 10, 3 (2009): 333-349.

Duflo, Esther. Schooling and Labor Market Consequences of School Construction in

Indonesia: Evidence from an Unusual Policy Experiment,American Economic Review, 91, 4 (2001):795-813.

DISCUSSION ITEM: Participatory budgeting

Class 14 (December 14):

Special Topics -2

Fall 2010 Syllabus Version 1

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Transcript of Fall 2010 Syllabus Version 1