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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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Listed author(s):
  • Berliant, Marcus
  • Wang, Ping

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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File URL: https://mpra.ub.uni-muenchen.de/2770/1/MPRA_paper_2770.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2770.

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Date of creation: 17 Apr 2007
Handle: RePEc:pra:mprapa:2770
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Keywords: Core-Periphery Urban Structure; Agglomerative Production Activity; Endogenous Formation of Cities;

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

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Cited by:

  1. Dominique Prunetti & Alexandre Muzy & Eric Innocenti & Xavier Pieri, 2014. "Utility-based Multi-agent System with Spatial Interactions: The Case of Virtual Estate Development," Computational Economics, Springer;Society for Computational Economics, vol. 43(3), pages 271-299, March.
  2. Steven G. Craig & Janet E. Kohlhase & Adam W. Perdue, 2016. "Empirical Polycentricity: The Complex Relationship Between Employment Centers," Journal of Regional Science, Wiley Blackwell, vol. 56(1), pages 25-52, 01.
  3. Pierre Picard & Yves Zenou, 2014. "Urban Spatial Structure, Employement and Social Ties," CREA Discussion Paper Series 14-31, Center for Research in Economic Analysis, University of Luxembourg.
  4. Miquel-Àngel Garcia-López & Camille Hémet & Elisabet Viladecans-Marsal, 2016. "Next train to the polycentric city: The effect of railroads on subcenter formation," Working Papers XREAP2016-06, Xarxa de Referència en Economia Aplicada (XREAP), revised Nov 2016.
  5. Jaume Masip Tresserra, 2012. "Identifying the Employment and Population Centers at regional and metropolitan scale: The Case of Catalonia and Barcelona," ERSA conference papers ersa12p70, European Regional Science Association.
  6. Wall, Howard J., 2013. "The employment cycles of neighboring cities," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 177-185.
  7. Mossay, P. & Picard, P.M., 2011. "On spatial equilibria in a social interaction model," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2455-2477.
  8. Grover,Arti & Lall,Somik V., 2016. "Jobs in the city : explaining urban spatial structure in Kampala," Policy Research Working Paper Series 7655, The World Bank.
  9. Picard, Pierre M. & Zenou, Yves, 2015. "Urban Spatial Structure, Employment and Social Ties: European versus American Cities," IZA Discussion Papers 9166, Institute for the Study of Labor (IZA).
  10. Ajay Agarwal & Genevieve Giuliano & Christian Redfearn, 2012. "Strangers in our midst: the usefulness of exploring polycentricity," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 433-450, April.
  11. Akamatsu, Takashi & Takayama, Yuki & Ikeda, Kiyohiro, 2012. "Spatial discounting, Fourier, and racetrack economy: A recipe for the analysis of spatial agglomeration models," Journal of Economic Dynamics and Control, Elsevier, vol. 36(11), pages 1729-1759.
  12. Jaume Masip Tresserra, 2012. "Does Employment Density death? Towards a new integrated methodology to identify and characterize Sub-Centres," ERSA conference papers ersa12p71, European Regional Science Association.
  13. Picard, Pierre M. & Tabuchi, Takatoshi, 2013. "On microfoundations of the city," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2561-2582.
  14. Elena G. Irwin, 2010. "New Directions For Urban Economic Models Of Land Use Change: Incorporating Spatial Dynamics And Heterogeneity," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 65-91.

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