Doel vak

This course in Urban and Real Estate Economics addresses the
relationship between urban space, real estate development and economic
development. It links economic theory to urban and real estate
development, and it places real estate development in the wider context
of the relation between city growth and economic development. Insights
are developed both through studying theoretical backgrounds and by
considering practical examples of the issues at hand.

The following topics are covered: (1) Why cities exist, (2) Urban
spatial structure, (3) Land use and urban planning, (4) Housing, (5)
Housing policies, (6) Local public goods and services, (7) Green cities,
(8) Crime, (9) Cities in the Global South.

With respect to each topic you should be able to define and describe it
and to understand the economic theory as well as the empirical
(econometric) analysis of the topic.

Inhoud vak

Becasue of technological change (rail, road, air, internet) the cost of
connecting across space have declined sharply, which should have made it
less attractive for people to cluster together in cities. Yet by many
measures, cities are thriving all over the world. Most economic
activities such as production, consumption and innovation take place in
urban areas, despite the relatively high location costs.

Why is this the case? Why are some cities thriving, while others face
serious decline? Why are real estate prices more or less stagnant in
some cities or neighborhoods, while they rise sharply in others? Why do
firms and households prefer one location of the other? When thinking
about location behavior of firms and households, we touch upon various
topics that have a substantial impact on real estate markets. For
example, the economic backgrounds and consequences of suburbanization,
the rise of urban 'subcentres', and the rise of so-called 'network
cities', as witnessed worldwide (and in The Netherlands alike). We will
also look at interdependencies between cities, in terms of their
economic dynamics and functional development.

At the aggregate level, location choices by firms and households
translate into (changes in) land use and real estate development in
modern cities. In this course you learn, both from a theoretically and
empirically perspective, to analyze land prices as a function of, inter
alia, population and real estate characteristics, location and transport
costs. In addition, we identify the (im)possibilities of influencing the
observed trends through urban and real estate policies. What is the
impact of imposing or relaxing urban planning regulation on real estate
development? Finally, we address some typically urban phenomena in
relation to real estate markets: urban environment and green buildings,
crime, and local public goods and services such as schooling and parks.

Onderwijsvorm

Three meetings per week. During the first part of each meeting the
lecturer introduces a certain topic, based on the required reading
material. The second part of each meeting is a tutorial, where students
work on assignments under guidance of the lecturer. Students are
expected to have read the material in advance, the lectures cover key
elements only. The vartious assignments include a refresher of essential
micro economic theory, development of an theoretical urban model, an
empirical (econometric) analysis using Stata software and writing an
essay.

Toetsvorm

Five assignments (60%) and a written exam (40%). The minimum grade for
the written exam should be at least 5.0 to pass the course. The overall
grade should be at least a 5.5 to pass.

Vereiste voorkennis

Introductionary level of microeconomics.

Literatuur

- Jan K. Brueckner (2011), Lectures on Urban Economics, MIT Press.
- Selected academic papers (see Canvas for details).

Doelgroep

Second or third-year bachelor students who want to get a solid
introduction into the economics of cities and real estate, economic
geography or spatial economics.

Aanbevolen voorkennis

Basic knowledge of econometrics (regression analysis) is recommended.