B5504 - SPATIAL ECONOMICS

Learning outcomes

This course builds on preliminary notions from previous courses in urban and regional economics to provide students with a clear understanding of the determinants of the spatial economic equilibrium and hence the geography of modern economic systems. Successful students will learn to master the complex interaction between workers' mobility, transportation costs, economies of scale, and population growth to delve into the roots of the process of new city formation and the emergence of a hierarchical urban system. By the end of this course, students will possess the analytical skills to assess spatial patterns related to land use and urban development and will be able to discuss and evaluate public policies addressing the main socio-economic challenges within the urban context.

Course contents

The course is structured in two modules.

Module 1: The Theory of Agglomeration
The module explores a wide range of themes, including the sources of agglomeration economies and their interaction with other economic factors. In doing so, it provides an introduction to the fundamentals of the so-called “new economic geography” — the current mainstream theoretical framework for understanding how economic activity (i.e., manufacturing, agriculture, trade and services) is distributed and organized across space.
A particular emphasis is placed on land use and the economic forces driving the development of urban systems, with special attention to the spatial distribution of urban centers and their relative sizes.

The module consists of 10 lessons, which cover the following topics:
• The central place theory
• Monopolistic competition and its spatial implications
• Core-periphery models, and extensions (multiple regions, continuous space)
• Spatial models of urban systems
• The monocentric economy
• The emergence of new cities
• Evolution of a hierarchical urban system
• Ports, transportation hubs, and city location


Module 2: Topics in Urban Economic Policy
This module addresses key issues relevant to policymakers and urban planners, with a focus on socio-economic and housing policy. The teaching approach combines instructor-led lectures (introducing core economic concepts as applied to urban settings) with interactive sessions that include student group presentations based on assigned readings. These are followed by in-class discussions aimed at fostering policy-oriented debates supported by empirical evidence from the academic literature.

The topics covered include:
• Urban spatial structure: segregation by income and ethnicity, the formation of ghettos, and gentrification processes.
• Urban sprawl and land-use controls: causes, consequences, and the role of zoning and urban planning policies.
• Crime and urban policy: economic theories of crime and the optimal allocation of the police force between rich and poor neighborhoods.

Readings/Bibliography

Module 1: Fujita, M., Krugman, P., and A. Venables: "The Spatial Economy: Cities, Regions, and International Trade", The MIT press, 1999.

Module 2: Brueckner, J. K.: “Lectures on Urban Economics”, The MIT Press, 2011.

Additional material will be distributed in class, or uploaded on the web page of this course on Moodle (www.virtuale.unibo.it ).

Teaching methods

Module 1: traditional lectures throughout, with interaction with students.

Module 2: mixed teaching approach combining traditional lectures and homework assignments, plus classroom activities including small group student presentations and in-class discussions focusing on policy issues.

Assessment methods

Module 1

Assessment for this module will take the form of an open-book exam, administered in one of the Rimini Campus computer laboratories via the EOL platform. The exam consists of an open-ended question based on a topic covered in the course. Students will be asked to interpret and comment on a graph, applying the economic concepts and insights discussed in class.

Students may choose to take this exam either during the midterm period (at the end of Module 1) or on any of the three official exam dates scheduled during the academic year.

 

Module 2

Evaluation for this part of the course is based on:

• Group project presentations, assessed both at the group and individual level.
• Individual participation in classroom discussions following the presentations.

Participation in group work is mandatory, and successful completion exempts students from the need to take a final written exam for this module.

 

Final Grade Composition. The final grade (out of 30) for the "Spatial Economics" course will be calculated as follows:

50% – Score from the Module 1 open-book exam

25% – Evaluation of group work (in-class presentation) for Module 2

25% – Preparation, participation, and engagement in classroom discussions (Module 2)

 

Re-sit and Grade Improvement Options. Students who fail the course or who are not satisfied with their final grade have the opportunity to retake the exam during one of the three scheduled dates. They may choose to retake the exam for both modules or only one, depending on their previous scores. Those who choose to retake Module 2 will forfeit the points previously earned through group presentations and class participation. Instead, they will sit a closed-book written exam, which includes:

A short essay question

A set of multiple-choice questions

In line with university regulations, students are entitled to reject a passing grade (i.e., 18/30 or higher) and retake the exam. However, this option may be exercised only once, whether for one module or both.

Teaching tools

All teaching materials will be uploaded on the course page on the Moodle platform (www.virtuale.unibo.it )

Office hours

See the website of Stefano Antonio Bolatto