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Urban growth and subcenter formation: A trolley ride from the Staples Center to Disneyland and the Rose Bowl

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Berliant, Marcus
Wang, Ping

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Abstract

The long-term trends of urbanization suggest: not only have more cities formed, but the leading metropolises have grown larger, with a number of peripheral subcenters developing over time. Conventional models of urban growth are limited, in that commuting cost and congestion eventually result in decreasing returns in a monocentric city as population becomes very large. We construct a general-equilibrium model with dynamic interactions between spatial agglomeration and urban development, driven by location-dependent knowledge spillovers. Our contribution allows endogenous development of subcenters to capture benefits from knowledge spillovers and offset diminishing returns from urban congestion, thus permitting more sustained city growth.

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Publisher Info
Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 63 (2008)
Issue (Month): 2 (March)
Pages: 679-693
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Handle: RePEc:eee:juecon:v:63:y:2008:i:2:p:679-693

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Web page: http://www.elsevier.com/locate/inca/622905

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Keywords: Core-periphery urban structure Agglomerative production activity Endogenous formation of cities;

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    Other versions:
  3. Eaton, Jonathan & Eckstein, Zvi, 1997. "Cities and growth: Theory and evidence from France and Japan," Regional Science and Urban Economics, Elsevier, vol. 27(4-5), pages 443-474, August. [Downloadable!] (restricted)
    Other versions:
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  8. Mills, Edwin S. & Nijkamp, Peter, 1987. "Advances in urban economics," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 17, pages 703-714 Elsevier. [Downloadable!] (restricted)
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  12. Anas, Alex & Rhee, Hyok-Joo, 2006. "Curbing excess sprawl with congestion tolls and urban boundaries," Regional Science and Urban Economics, Elsevier, vol. 36(4), pages 510-541, July. [Downloadable!] (restricted)
  13. Alex Anas, 2004. "Vanishing cities: what does the new economic geography imply about the efficiency of urbanization?," Journal of Economic Geography, Oxford University Press, vol. 4(2), pages 181-199, April.
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  15. Berliant, Marcus & Peng, Shin-Kun & Wang, Ping, 2002. "Production Externalities and Urban Configuration," Journal of Economic Theory, Elsevier, vol. 104(2), pages 275-303, June. [Downloadable!] (restricted)
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  16. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July. [Downloadable!] (restricted)
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  18. Jan K. Brueckner, 2005. "Urban Growth Boundaries: An Effective Second-Best Remedy for Unpriced Traffic Congestion?," Working Papers 050610, University of California-Irvine, Department of Economics. [Downloadable!]
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  20. McMillen, Daniel P. & Smith, Stefani C., 2003. "The number of subcenters in large urban areas," Journal of Urban Economics, Elsevier, vol. 53(3), pages 321-338, May. [Downloadable!] (restricted)
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  22. Henderson Vernon & Slade Eric, 1993. "Development Games in Non-monocentric Cities," Journal of Urban Economics, Elsevier, vol. 34(2), pages 207-229, September. [Downloadable!] (restricted)
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  27. Marcus Berliant & Ping Wang, 2004. "Dynamic Urban Models: Agglomeration and Growth," Urban/Regional 0404006, EconWPA. [Downloadable!]
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  28. Palivos, Theodore & Wang, Ping, 1996. "Spatial agglomeration and endogenous growth," Regional Science and Urban Economics, Elsevier, vol. 26(6), pages 645-669, December. [Downloadable!] (restricted)
  29. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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