iiiContents86Human Capital and Economic GrowthTheUrban Labor Market8794EmploymentGrowth and Decline of the U.S.Manufacturing Belt96PublicPolicyandEquilibriumEmployment100Projecting Changes in Total Employment101Who Benefits from Increased Employment?103Summary103Applying the Concepts106References and Additional Reading107AppendixTheRegional ContextofUrbanGrowthThe Neoclassical Model107110Regional Concentration and Dispersion in the United StatesReferences and Additional Reading111PARTII113LAND RENTAND LAND-USEPATTERNS114Chapter6 Urban LandRent114IntroductiontoLandRent115Bid-RentCurvesfortheManufacturingSector116Bid-RentCurvesfortheInformationSector120Office Bid-Rent Curves with Factor Substitution125HousingPrices128TheResidentialBid-Rent Curve130Relaxing the Assumptions:TimeCosts,PublicServices,Taxes,Amenities131Land-Use Patterns134Henry George and the Single Tax on Land136Summary136Applying the Concepts139References and Additional Reading140Appendix ConsumerandFactor Substitution140Consumer Choice and the Law of Demand143Input Choice and Factor Substitution145Chapter7 Land-UsePatterns145TheSpatialDistributionof Employment
ivContents152The Spatial Distribution of Population156The Rise of the Monocentric City158The Demise of the Monocentric CityUrbanSprawl163Are Skyscrapers Too Tall?168170Summary170ApplyingtheConcepts173References and Additional Reading174AppendixTheMonocentricModel andApplications174The Monocentric Model176Incomeand Location178AGeneral EquilibriumModelofaMonocentricCity180Applying the Concepts182Chapter8Neighborhood Choice182Diversity versus Segregation183SortingforLocal PublicGoods187Neighborhood ExternalitiesNeighborhood Choice188193Neighborhood Choices:TheRoles of Education and Crime196Racial Segregation200The Consequences of Segregation202Summary203ApplyingtheConcepts205References and Additional Reading208Chapter9 Zoningand GrowthControls208Land-Use Zoning213The Legal Environment of Zoning216ACity without Zoning?216GrowthControl:UrbanGrowthBoundaries222OtherGrowth-Control Policies224Housing Regulations and Housing Prices225Summary226Applying the Concepts229References andAdditional Reading
VContentsPARTIII231URBANTRANSPORTATIONChapter10 Autos andHighways232235Congestion Externalities238The Congestion Tax241Practicalities of the Congestion Tax244Alternativestoa CongestionTax246TheRoadCapacityDecision249AutosandAirPollution251MotorVehicleAccidents256Automobiles andPoverty256Summary257Applying the Concepts260References and Additional ReadingChapter1 UrbanTransit262262Commuting and Transit Ridership263The Costof Travel and Modal ChoiceThe Efficient Volume of Ridership267273DesigningaTransit System277Deregulation:Contracting and Paratransit280Transit and Land-use Patterns281Summary281Applying the Concepts283References and Additional ReadingPARTIV285EDUCATIONANDCRIMEINCITIES286Chapter12 Education286Spending and Educational AchievementThe Education Production Function288290School Inputs:The Importance of Teachers295Innovation:CharterSchools296Spending Inequalities and Public Policy301Education in Central Cities
viContents301Summary302ApplyingtheConcepts303References and Additional Reading305Chapter13Crime305Crime Facts307The Rational Criminal312The Equilibrium Quantityof Crime315Legal Opportunities and Education316Applications:Big-CityCrimeand theCrimeDrop319How Much Crime?323The Role of Prisons324Summary324ApplyingtheConcepts327Referencesand Additional ReadingPARTVHOUSING329Chapter144WhyIs HousingDifferent?330330Heterogeneity and Hedonics332Durability,Deterioration,andMaintenance336MovingCostsandConsumerDisequilibriumThe Filtering Model of the Housing Market338343SummaryApplying the Concepts344346References and Additional Reading348Chapter 15 Housing Policy348Public Housing353Housing Vouchers356CommunityDevelopmentand UrbanRenewal358WhichHousingPolicyIsBest?359Subsidies for Mortgage Interest361Rent Controland RentRegulation363Summary363Applying the Concepts
viiContents365References and Additional ReadingPARTVILOCALGOVERNMENT369370Chapter166TheRoleofLocalGovernment370TheRoleof Local Government372Local PublicGoods:EquilibriumversusOptimumNatural Monopoly376377Externalities379FederalismandMetropolitanGovernment380A Closer Look at the Median Voter Result384Summary384Applyingthe ConceptsReferences and Additional Reading386Chapter17Local GovernmentRevenue388388WhoPaystheResidentialPropertyTax?396FromModelstoReality398TheTiebout Model and thePropertyTax399Limitson PropertyTaxes401Intergovernmental Grants405Summary406ApplyingtheConcepts408ReferencesandAdditionalReading410AppendixTools of Microeconomics