Lecture6_InternalStructure.pdf - ECON280D Lecture 6 Internal Structure of Cities \u2013 Commuting Cecile Gaubert U.C Berkeley ECON280D Spring 2019 C

Lecture6_InternalStructure.pdf - ECON280D Lecture 6...

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ECON280D Lecture 6: Internal Structure of Cities – Commuting Cecile Gaubert U.C. Berkeley ECON280D. Spring 2019. C. Gaubert Lecture 6 Commuting 1 / 45
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Within-city structure I Monocentric city model traditionaly used to analyze how agglomeration and dispersion forces shape the within-city distribution of population. I all employment in CBD (by assumption) I dispersion of residential location due to combination of land scarcity and commuting costs I predicts land rent gradient away from the CBD, that exactly offsets commuting costs ( spatial equilibrium ) I But: monocentric model is often at odds with data at the micro level. I gradients of population, income, rents etc. are often not monotonic I rise of polycentric cities: not all workplaces in the center I need more heterogeneity – quantitative models of within-city geography ECON280D. Spring 2019. C. Gaubert Lecture 6 Commuting 2 / 45
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Some research questions I Understand agglomeration at the microspatial level. I a potentially important determinant of productivity I Measure the effect of local shocks and policies, such as I transport infrastructure improvements I land-use regulation I plant openings I Study urban topics I residential segregation I gentrification I New elements in the analysis: I commuting I land use ECON280D. Spring 2019. C. Gaubert Lecture 6 Commuting 3 / 45
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Today I Measure agglomeration and dispersion forces within cities: Ahlfeldt, Redding, Sturm and Wolf (ECA 2015). I Integrate cross-city and within-city (commuting) quantitative analysis: Monte, Redding and Rossi-Hansberg (AER 2018). ECON280D. Spring 2019. C. Gaubert Lecture 6 Commuting 4 / 45
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Ahlfeldt, Redding, Sturm and Wolf (2015) I Little empirical evidence on the spatial scale of agglomeration. I vast majority of estimates are across cities. Abstracts from within-city variation I difficult to find exogenous variation in density within the city I Develop a quantitative model of city structure to measure agglomeration and dispersion forces, allowing variation in I production locational fundamentals I residential locational fundamentals I transport infrastructure I workers who live and work in different parts of the city I Combine the model with data on Berlin in 1936, 1986 and 2006. I use division of Berlin between WWII and 1989 as a source of exogenous variation in surrounding concentration ECON280D. Spring 2019. C. Gaubert Lecture 6 Commuting 5 / 45
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Model setup I Builds on symmetric city model by Lucas and Rossi-Hansberg (2002). I Extends to rich heterogeneity of neighborhoods within cities I City embedded in a larger economy. I outside world provides utility ¯ U – endogenous mass of workers H I discrete set of blocks i , with exogenous land endowment K i I Freely tradable final good, perfect competition (numeraire) ECON280D. Spring 2019. C. Gaubert Lecture 6 Commuting 6 / 45
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Model setup I Workers choose block of residence and block of employment to maximize utility.
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  • Spring '19
  • Cecile Gaubert
  • West Berlin, Generalized method of moments, C. Gaubert

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