HE3013

Urban Economics
[Pre-requisites: HE201 / HE9092 and HE204A / HE204B]
Prospectus
This course studies urban spaces from an economists perspective. Why do cities exist,
and what are the benefits and costs of organizing economic and social activity in
close proximity? Students taking this course will apply intermediate microeconomic
theory and micro-econometrics to the analysis of cities and urban problems. Students will
also be expected to understand and interpret contemporary empirical economic research
into urban problems. Fundamental contributions from other social sciences and
disciplines to the study of urban economic activity may also be discussed.
In line with the courses objectives, students will be assessed based on a course project
involving some basic applied research, and a final examination testing knowledge and
application of theory and concepts.
Instructor
Dr. Walter Theseira, HSS-04-49, wetheseira@ntu.edu.sg
Tel: 9868 0453 (urgent matters only, please)
Consultation Hours: 12.30PM to 2.30PM Tuesdays (Day of Class; please send me an
email to let me know or tell me in class)
Course Outline (Tentative)
Week
1; 14 Jan

Topic
Introduction; Why Do Cities Exist?

Readings
OSullivan, Ch. 1, 2

2; 21st Jan

OSullivan, Ch. 3

3; 28th Jan

Clustering and Agglomeration

Economies
Urban Size and Growth

4; 4th Feb

The Land Rent Model

OSullivan, Ch. 6

5; 11th Feb

Land Usage Patterns

OSullivan, Ch. 7

6; 18th Feb

Spatial Choices and Neighborhood

Effects

OSullivan, Ch. 8

7; 25th Feb

Spatial Policies and Urban Planning

OSullivan, Ch. 9

th

8; 11 Mar

Recess Week 3rd Mar 7th Mar 2014

Urban Transport and Policy

9; 18th Mar

Housing Markets and Policies

th

OSullivan, Ch. 4, 5

OSullivan, Ch. 10,

11
OSullivan, Ch. 14

10; 25th Mar

Housing Policies

11; 1st Apr

Reserved For Course Project

12; 8th Apr

Reserved For Course Project

13; 15th Apr

Reserved For Course Project

OSullivan, Ch. 15

Learning Objectives
1. To understand how to model, analyze, and interpret economic activity in spatial
terms.
2. To understand the economic factors behind the existence, evolution, and growth
of cities.
3. To understand the economic causes and consequences of key urban challenges
and the policy responses to those challenges, inter alia, urban transportation and
housing markets
4. To be able to read and interpret contemporary applied research on urban
economics topics.
Learning Outcome
Students will be able to apply the principles of microeconomic theory and analysis to the
study of urban issues. Students will understand contemporary empirical research on urban
issues. These skills will prepare students for conducting research on urban issues and
topics as well as for professions involving urban policy planning and analysis, real estate
development and analysis, or business development in urban areas.
Student Assessment
50% Course Project
50% Final Examination
Textbooks/References
Primary:
HT321.S85 (various years); HSS Library, Business Library
OSullivan, A. Urban Economics. (2012) 8th Edition. McGraw-Hill.
Background Reading:
Glaeser, E. (2012) Triumph of the City: How Our Greatest Invention Makes Us Richer,
Smarter, Greener, Healthier, and Happier. Penguin.
2

[ADVANCED] Glaeser, E. (2008) Cities, Agglomeration, and Spatial Equilibrium. (The

Lindahl Lectures) Oxford.
Jacobs, J. (1985) Cities and the Wealth of Nations. Vintage.
Putnam, R. (1995) Bowling Alone: Americas Declining Social Capital. Journal of
Democracy 6(1), pp. 65-78
[ADVANCED] Sassen, S. (2001) The Global City: New York, London, Tokyo.
Princeton.
[ADVANCED] Fujita, M., Krugman, P. and Venables, A. (2001) The Spatial Economy:
Cities, Regions and International Trade
Papers (roughly in order of use in class)
Glaeser E, Kolko J, Saiz A. (2001) Consumer City. Journal of Economic Geography 1:
27-50
Jaffe A, Trajtenberg M, Henderson R. (1993) Geographic Localization of Knowledge
Spillovers as Evidenced by Patent Citations. Quarterly Journal of Economics 108(3):
577-598
Greenstone M, Moretti E. (2003) Bidding for Industrial Plants: Does Winning a Million
Dollar Plant Increase Welfare? NBER Working Paper 9844
Katz L, Kling J, Liebman J. (2001) Moving to Opportunity in Boston: Early Results of a
Randomized Mobility Experiment. Quarterly Journal of Economics 116(2): 607-654
Cutler D, Glaeser E. (1997) Are Ghettos Good or Bad? Quarterly Journal of Economics
112(3): 827-872
Choi C, Toh R. (2010) Household Interview Surveys from 1997 to 2008 A Decade of
Changing Travel Behaviors. Journeys (May): 52-61
Phang S, Toh R. (2004) Road Congestion Pricing in Singapore: 1975 to 2003.
Transportation Journal. 43(2): 16-25
Leape J. (2006) The London Congestion Charge. Journal of Economic Perspectives 20(4):
157-176
Richmond J. (2008) Transporting Singapore The Air-Conditioned Nation. Transport
Reviews 28(3): 357-390

Sue E, Wong W. (2010) The Political Economy of Housing Prices: Hedonic Pricing with
Regression Discontinuity. Journal of Housing Economics 19:133-144