Daniel P. McMillen is Professor of Economics at the University of Illinois at Chicago, and a member of the Institute of Government and Public Affairs. His articles have been published in such journals as Review of Economics and Statistics, Journal of Urban Economics, Regional Science and Urban Economics, Journal of Business and Economic Statistics, and Real Estate Economics. He is co-author, with John McDonald, of Urban Economics and Real Estate: Theory and Policy (Blackwell, 2007).

List of Figures viii

List of Tables xi

Notes on Contributors xiii

Preface xx

PART I URBANIZATION

1 The Micro-Empirics of Agglomeration Economies 7
Stuart S. Rosenthal and William C. Strange

2 Human Capital Externalities in Cities: Identification and Policy Issues 24
Gilles Duranton

3 The First Cities 40
Arthur O'Sullivan

4 Cross-Country Patterns of Urban Development 55
Stephen Malpezzi

PART II URBAN LAND USE

5 The Spatial Pattern of Land Use in the United States 77
Elena G. Irwin and Nancy E. Bockstael

6 Monocentric Cities 96
Marvin Kraus

7 Space in General Equilibrium 109
Marcus Berliant and Courtney LaFountain

8 Testing for Monocentricity 128
Daniel P. McMillen

PART III HOUSING AND REAL ESTATE

9 The Economic Theory of Housing Tenure Choice 145
Franz Hubert

10 Housing Policy: Low-Income Households in France 159
Anne Laferrère and David Le Blanc

11 Housing Demand: An International Perspective 179
Miki Seko

12 Discrimination in Mortgage Lending 197
Anthony M. Yezer

13 Commercial Real Estate 211
David Geltner

14 Housing Price Indexes 228
Bradford Case

PART IV URBAN TRANSPORTATION

15 Urban Transport Economic Theory 245
Yoshitsugu Kanemoto

16 Urban Passenger Travel Demand 261
André de Palma, Robin Lindsey, and Nathalie Picard

17 Urban Transportation and Land Use 281
John F. McDonald

18 Urban Transport Policies: The Dutch Struggle with Market Failures and Policy Failures 292
Piet Rietveld

PART V URBAN PUBLIC ECONOMICS

19 Financing Cities 311
Robert P. Inman

20 Strategic Interaction among Governments 332
Jan K. Brueckner

21 Property and Land Taxation 348
John Douglas Wilson

22 A Theory of Municipal Corporate Governance with an Application to Land-Use Regulation 372
William A. Fischel

PART VI URBAN LABOR MARKETS AND MACROECONOMICS

23 Urban Labor Markets 389
Timothy J. Bartik and Randall W. Eberts

24 A Primer on Spatial Mismatch within Urban Labor Markets 404
Keith R. Ihlanfeldt

25 Urban Labor Economic Theory 418
Yves Zenou

26 Macroeconomic Analysis Using Regional Data: An Application to Monetary Policy 440
Gerald A. Carlino and Robert H. DeFina

27 Measuring and Analyzing Urban Employment Fluctuations 460
N. Edward Coulson

PART VII QUALITY OF LIFE

28 Measuring Quality of Life 483
Glenn C. Blomquist

29 Air Pollution in Cities 502
Matthew E. Kahn

30 Urban Crime, Race, and the Criminal Justice System in the United States 515
Steven Raphael and Melissa Sills

31 Ethnic Segregation and Ghettos 536
Alex Anas

Index 555