What is the central thesis of the book? America is experiencing a "Great Divergence."
What does Moretti mean by "The Great Divergence"? What is causing it? America is
experiencing a growing economic divergence between prosperous areas and d
Chapter 6: Urban Land Rent
Rent refers to a periodic payment for the use of
something that is owned by someone else.
Land rent is the periodic payment by a land user to a
landowner for the use of land.
Unfortunately, we cant always easily separate out the
Chapter 7: Land Use Patterns
The monocentric city was the norm prior to the 20th
Intracity freight was via horse drawn wagon, which was
relatively slow and expensive.
Innovations in intracity transportation decreased commute
costs and increased t
Chapter 4: City Size
Why do cities differ in size and scope?
Economies of scale and agglomeration economies
have limited range.
Cities differ in natural advantage and production
Localization economies encourage small specialized
Chapter 5: Urban Growth
Economic growth refers to an increase in real per
Employment growth refers to an increase in total
employment in an area.
Sources of economic growth include capital
deepening, increases in human capital, technologica
Chapter 2: Why Do Cities Exist?
This is the fundamental question of urban economics.
For many people living in cities is costly and unpleasant.
So why do people live in cities?
Cities exist because the benefits of concentrating people
and economic activit
Chapter 3: Why Do Firms Cluster?
Short answer: Firms cluster when the benefits of doing so
exceed the costs.
What are the costs of clustering?
Higher land rents
Higher rents also mean firms have to pay workers higher
wages to compensate them for the highe
Chapter 15: Housing Policy
Should government intervene in the housing market?
Why or why not?
Government intervenes in the housing market in
several ways including:
Policies to promote low-income housing
Urban renewal programs
Chapter 1: Introduction and Axioms
What is Urban (and Regional) Economics?
The intersection of economics and geography
The study of location choices of utility-maximizing
households and profit-maximizing firms within an
The economics of ci
Chapter 13: Crime
Major types of crime include violent crimes (such as
murder, rape, aggravated assault, and robbery) and
property crime (such as burglary, larceny, and auto theft.).
Crime rates in the U.S. increased between 1960 and 1980
but began a stea
What is housing?
Housing refers to a physical structure in which people
regularly reside to receive shelter and protection from the
outside world/natural elements.
How is housing different from other goods?
1. Housing is heterogeneous.
Chapter 9: Zoning and Growth Controls
Zoning refers to laws and regulations by local government
that restrict land use.
Zoning is intended to separate land uses that are
Zoning can be used as environmental policy to limit
Chapter 8: Neighborhood Choice and Segregation
Types of neighborhood segregation include:
Complete diversity exists if all neighborhoods have
an equal representation of households of different
races and income levels.
Chapter 12: Education
Are we spending the right amount on education?
Education is important because:
It increases an individuals earning capacity.
It has other private benefits for individuals.
It has positive externalities.
School quality affects residen