Econ 381
Urban Economics
Summer I 2004
Study
Guide for Exam #2
Exam
#2: Tuesday, June 29
Key terms and
ideas to know:
·
Calculation of
the U.S. poverty level
·
Community
Development Corporations (or
Community-Based Organizations)
·
Black Capitalism
·
Progressives,
social reformers, tenement reform
movement
·
City Beautiful
and American Parks Movement
·
equivalent
elimination
·
Housing Act of
1954
·
CDBG (Community
Development Block Grant)
·
1996 Welfare
Reform Act, HOPE IV Housing, and
Empowerment Zones
·
Urban economic
base theory and the location
quotient
·
Be familiar with
the critiques of the monocentric
city. In what ways is the theory of the
monocentric city unable to account for economic growth?
·
Be ale to
analyze the market for housing and,
specifically, the determinants of the supply and demand for housing. Explain how the demand for housing is a
demand for the quantity and quality of housing, tax policy, inflation
and the
role of neighborhood effects in determining housing values.
·
Evidence of
racial segregation in housing has been
described using the dissimilarity index.
Be able to explain the index and what it means.
Be sure you understand how neoclassical
economists explain racial discrimination as the outcome of rational
choice on
the one hand and imperfect information on the other.
·
Be able to
describe the evolution, over the course
of the 20th century, of federal urban policy toward cities.
·
There are three
approaches that economists and
social scientists can use to understand the role of the state in the
urban economy. Be familiar with each one
on analytic
grounds.
·
Be able to
explain Michael Porter’s recommendations
for revitalizing the inner-city. In
particular be able to identify the strategic economic advantages that
Porter
believes inner-cities possess.
·
Be familiar with
the basis of Porter’s thesis in:
(a) comparative advantage; (b) localization and urbanization economies;
(c)
export-oriented growth theory; and (d) supply-side economics.
·
If asked to
criticize Porter be able to utilize the
arguments of Harrison and Glasmeier as well as the criticism presented
in
class.
·
What constitutes
a “cool city.” What is the basis for the
“cool cities”
program for urban economic development?