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Urban Growth and Subcenter Formation: A Trolley Ride from the Staples Center to Disneyland and the Rose Bowl

  • Marcus Berliant

    (Washington University in St. Louis)

  • Ping Wang

    (Washington University in St. Louis & NBER)

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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File URL: http://econwpa.repec.org/eps/urb/papers/0511/0511012.pdf
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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
Date of revision:
Handle: RePEc:wpa:wuwpur:0511012
Note: Type of Document - pdf; pages: 29
Contact details of provider: Web page: http://econwpa.repec.org

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  1. Marcus Berliant & Robert R. Reed III & Ping Wang, 2000. "Knowledge Exchange, Matching, and Agglomeration," Vanderbilt University Department of Economics Working Papers 0033, Vanderbilt University Department of Economics.
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  14. 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.
  15. 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.
  16. Henderson, Vernon & Mitra, Arindam, 1996. "The new urban landscape: Developers and edge cities," Regional Science and Urban Economics, Elsevier, vol. 26(6), pages 613-643, December.
  17. Abdel-Rahman, H.M. & Wang, P., 1993. "Toward a General-Equilibrium Theory of Core-Periphery System of Cities," Papers 10-93-29, Pennsylvania State - Department of Economics.
  18. Henderson Vernon & Slade Eric, 1993. "Development Games in Non-monocentric Cities," Journal of Urban Economics, Elsevier, vol. 34(2), pages 207-229, September.
  19. Alex Anas & Kai Xiong, 2003. "Intercity Trade and the Industrial Diversification of Cities," Urban/Regional 0302003, EconWPA.
  20. Duncan Black & Vernon Henderson, 1999. "A Theory of Urban Growth," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 252-284, April.
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  23. 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.
  24. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
  25. Karl Shell, 2010. "Toward A Theory of Inventive Activity and Capital Accumulation," Levine's Working Paper Archive 1407, David K. Levine.
  26. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, Junio.
  27. Abdel-Rahman, Hesham M., 1990. "Agglomeration economies, types, and sizes of cities," Journal of Urban Economics, Elsevier, vol. 27(1), pages 25-45, January.
  28. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  29. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  30. Fujita, Masahisa & Thisse, Jacques-Francois & Zenou, Yves, 1997. "On the Endogeneous Formation of Secondary Employment Centers in a City," Journal of Urban Economics, Elsevier, vol. 41(3), pages 337-357, May.
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  34. Fujita, Masahisa & Krugman, Paul, 1995. "When is the economy monocentric?: von Thunen and Chamberlin unified," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 505-528, August.
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