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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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Author Info
Marcus Berliant (Washington University in St. Louis)
Ping Wang (Washington University in St. Louis & NBER)

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Abstract

There have been long-term trends of urbanization and sustained growth across developed and developing countries over the past two centuries. 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. In our paper, we construct an endogenous growth model with dynamic interactions between spatial agglomeration and urban development. In contrast with the conventional endogenous urban growth framework, our paper models explicitly the underlying growth-driven mechanism, namely location- dependent knowledge spillovers. Our contribution allows endogenous development of subcenters to offset diminishing returns from urban congestion, thus permitting sustained city growth.

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Publisher Info
Paper provided by EconWPA in its series Urban/Regional with number 0511012.

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Length: 29 pages
Date of creation: 23 Nov 2005
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Handle: RePEc:wpa:wuwpur:0511012

Note: Type of Document - pdf; pages: 29
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Web page: http://129.3.20.41

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Related research
Keywords: Core-Periphery Urban Structure; Agglomerative Production Activity; Endogenous Formation of Cities;

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Find related papers by JEL classification:
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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    Other versions:
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    Other versions:
  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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    Other versions:
  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)
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    Other versions:
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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)
    Other versions:
  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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    Other versions:
  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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    Other versions:
  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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    Other versions:
  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!]
    Other versions:
  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)
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