10HotTopicsinUrbanEconomics

(including HousingEconomics)

ChristianHilberLondonSchoolofEconomics

HotTopicsrelatedtoLandandHousingMarkets

1. Costsandbenefitsoflanduseplanning Benefitsidewellknowbutcostsarelargelyignored Regulatorycost=reasonforaffordabilitycrisisincountriessuchasUK? Recommendedreadings:CheshireandHilber(2008,EconomicJournal);Hilber

andVermeulen(2010,FinalReport,DepartmentforCLG)

2. Housingbubbles:theroleoflendingstandardsandsupplyconstraints Whichfactorscausedthehousingbubble? Isitreallyabubble(=pricesdeviatefromfundamentals)? Roleoflooseningoflendingstandardsandsupplyconstraints Recommendedreadings:Glaeseretal.(2010,HarvardKennedySchoolPolicy

Briefs),Glaeseretal.(2008,JournalofUrbanEconomics),Duca etal.(2011aandb,SERCDPs););HilberandVermeulen(2010,FinalReport,DepartmentforCLG)

HotTopicsrelatedtoLandandHousingMarkets(cont.)

3. Homeownership,mortgagedefaultsandthecreditcrunchcrisis Whichfactorscausedhousingbubble? Isitreallyabubble(=pricesdeviatefromfundamentals)? Roleoflooseningoflendingstandards(andlanduseplanning,seehottopic

1above) Recommendedreadings:Mian andSufi(forthcoming,AmericanEconomic

Review),HilberandTurner(2010,SERCDP)

4. Greenbuildings&sustainability Whatistheeconomicvalueofthecertificationofgreenbuildings? Preliminaryresultssuggestthatgreenbuildingscommandhigherrentsandselling

prices? Whatarethecausesofthesepricepremiums? Recommendedreading:Eichholtz etal.(2010,AmericanEconomicReview)

HotTopicsrelatedtoGrowthofCitiesandProductivity

5. AgglomerationEconomies(ahottopicsince20years!)

Whattypesofagglomerationforcesfacilitatestrongeconomicgrowthincities(e.g.,specialization,competition,diversification)?

Whatarethebenefitsandcostsofagglomerations? Howimportantarethebenefitsandcostseconomically(attempttoquantifymagnitude) Recommendedreadings:Combesetal.(2009,CEPRDP),Combesetal.(2011,Journalof

EconomicGeography)

6. Entrepreneurshipandthecity

Whatmakesacityentrepreneurial? Whydosomecitieshavemanyentrepreneursandothersdont? Whatkindofentrepreneursencouragegrowth? Recommendedreadings:Glaeseretal.(2010aand2010b,JournalofUrbanEconomics)

7. Productivityintheretailsector

Whatfactorsdetermineretailproductivity? Doeslanduseplanningreduceproductivity? Whatistheroleofentrybarriers? Recommendedreadings:Cheshireetal.(2011,SERCDP),Schivardi andViviano (2011,

EconomicJournal)

HotTopicsrelatedtoEquityIssuesandtheFutureofCities

8. Realearningsdisparities&decliningplaces Howbigaredisparitiesreallywhenaccountingforhousingcosts? Towhatextentaredisparitiesdrivenbysortingofskilledhouseholdsintomore

productiveplaces? Recommendedreadings:Combesetal.(2008,JournalofUrbanEconomics),Gibbonset

al. (2011,SERCDP)

9. Informationtechnologyandurbanstructure:Docitieshaveafuture? Willtheymakecitiesobsoleteormoreimportant? Howeasytooutsourcetasks/rolesocialinteractions Recommendedreading:SinaiandWaldfogel (2004,JournalofUrbanEconomics),

Ioannidesetal.(2008,EconomicPolicy)

10. Spatialimpactofglobalization/theroleoftransportcosts&transportinfrastructureinvestments Willglobalizationcausecitiesindevelopedcountriestolooseout? WillmanufacturingproductiondisappearinWesternEuropeandtheUS? Costbenefitanalysisoftransportinfrastructureinvestment DoISinvestmentshelpovercomespatialdisparities? Recommendedreadings:Krugman (1991),Glaeser(2011)

References Cheshire,P.andC.A.L.Hilber(2008).OfficeSpaceandSupplyRestrictionsin

Britain:ThePoliticalEconomyofMarketRevenge.EconomicJournal,Vol.118,F185F221.

Cheshire,P.,C.A.L.HilberandI.Kaplanis(2011).EvaluatingtheEffectsofPlanningPoliciesontheRetailSector:ordoTownCentreFirstPoliciesDelivertheGoods?SERCDiscussionPaper,No.66,January.

Combes,P.P.,G.Duranton,L.Gobillon(2008).Spatialwagedisparities:Sortingmatters!JournalofUrbanEconomics,Vol.63,723742.

Combes,P.P.,G.Duranton,L.Gobillon,D.PugaandS.Roux(2009).Theproductivityadvantagesoflargecities:distinguishingagglomerationfromfirmselection.London:CEPRDiscussionPaper,No.7191.

Combes,P.P.,G.DurantonandL.Gobillon (2011).Theidentificationofagglomerationeconomies.JournalofEconomicGeography,Vol.11(2),253266.

References(cont.) Duca,J.V.,J.Muellbauer,A.Murphy(2011).HousePricesandCredit

Constraints:MakingSenseoftheU.S.Experience.SERCDiscussionPaper,No.77,March.

Duca,J.V.,J.Muellbauer,A.Murphy(2011).ShiftingCreditStandardsandtheBoomandBustinU.S.HousePrices.SERCDiscussionPaper, No.76,March.

Eichholtz,P.,N.Kok andJ.M.Quigley(2010).DoingGood?GreenOfficeBuildings.AmericanEconomicReview,Vol.100(5),24922509.

Gibbons,S.,H.G.Overman,G.Resende (2011).RealEarningsDisparitiesinBritain.SERCDiscussionPaper,No.65,January.

Glaeser,E.L.(2011).TriumphoftheCity.London.McMillan.

References(cont.) Glaeser,E.L.,J.GottliebandJ.Gyourko(2010).DidCreditMarketPoliciesCause

theHousingBubble?HarvardKennedySchoolPolicyBriefs,May.

Glaeser,E.L.,J.GyourkoandA.Saiz(2008).Housingsupplyandhousingbubbles.JournalofUrbanEconomics,Vol.64,198217.

Glaeser,E.L.,S.S.RosenthalandW.C.Strange(2010a).UrbanEconomicsandEntrepreneurship.JournalofUrbanEconomics,Vol.67,114.

Glaeser,E.L.,W.R.KerrandG.A.M.Ponzetto (2010b).Clustersofentrepreneurship.JournalofUrbanEconomics,Vol.67,150168.

Hilber,C.A.L.andT.M.Turner(2010).Themortgageinterestdeductionanditsimpactonhomeownershipdecisions.SERCDiscussionPaper,No.55,September.

Hilber,C.A.L.andW.Vermeulen(2010).TheImpactofRestrictingHousingSupplyonHousePricesandAffordability.FinalReport.DepartmentforCommunitiesandLocalGovernment,November.(www.communities.gov.uk/documents/housing/pdf/1767142.pdf)

References(cont.) Ioannides,Y.,H.G.Overman,E.RossiHansberg andK.Schmidheiny (2008).The

effectofInformationandCommunicationTechnologiesonUrbanStructure.EconomicPolicy,54,201242.

Krugman,P.(1991).GeographyandTrade.Cambridge(MA):MITPress.

Mian,A.R.andA.Sufi(forthcoming).HousePrices,HomeEquityBasedBorrowing,andtheU.S.HouseholdLeverageCrisis.ForthcomingAmericanEconomicReview.(DownloadableasChicagoBoothResearchPaperNo.0920)

Schivardi,F.andE.Viviano (2011).EntryBarriersinRetailTrade.EconomicJournal,121(551),145170.

SinaiandWaldfogel (2004).GeographyandtheInternet:istheInternetasubstituteoracomplementforcities?JournalofUrbanEconomics,56(1),124.