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 into two complementary modules exploring the theoretical foundations and policy applications of urban and spatial economics.

 

Module 1: Agglomeration Theory

This module explores a wide range of themes, including the sources of agglomeration economies and their interaction with other economic forces. It introduces the fundamentals of New Economic Geography (NEG), i.e., the current mainstream theoretical framework for understanding how economic activities (manufacturing, agriculture, trade, and services) are distributed and organized across space.

Special emphasis is placed on land use and the forces driving the development of urban systems, with particular attention to the spatial distribution and relative sizes of urban centers.

The module consists of 10 lectures covering the following topics:

• The Central Place Theory

• Monopolistic competition and its spatial implications

• Core-periphery models and their extensions (multiple regions, continuous space)

• Spatial models of urban systems

• The monocentric city model

• The emergence of new cities

• The evolution of a hierarchical urban system

• Ports, transportation hubs, and city location

 

Module 2: Topics in Urban Economic Policy

This module addresses key challenges relevant to policymakers and urban planners, with a primary focus on socio-economic dynamics and housing policy. The teaching approach combines instructor-led lectures (introducing core economic concepts applied to urban settings) with interactive sessions. These sessions include student-led group presentations based on assigned academic readings, followed by in-class discussions aimed at fostering evidence-based, policy-oriented debates.

The module covers the following core policy areas:

• Urban spatial structures: Income and ethnic segregation, the formation of ghettos, and gentrification processes.

• Urban sprawl and land-use controls: The causes and consequences of sprawl, alongside the role of zoning and planning policies.

• Crime and the city: The economic theory of crime and the optimal allocation of the police force across diverse 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: Delivered entirely through traditional lectures, maintaining an interactive classroom environment that encourages dialogue between the instructor and students.

Module 2: Features a blended teaching approach that combines traditional lectures and homework assignments with active classroom participation. This includes small-group student presentations and evidence-based, in-class discussions focused on urban policy issues.

Assessment methods

Module 1 Assessment

The assessment for this module is an open-book exam, administered in a Rimini Campus computer laboratory via the EOL platform. The format consists of one open-ended question where students are required to interpret and comment on a graph, applying the economic concepts and theoretical insights discussed in class.

This exam can be taken either as a midterm (at the end of Module 1) or during any of the three official exam sessions scheduled throughout the academic year.

 

Module 2 Assessment

The standard evaluation for this module is continuous and based on two group-work components:

1. Task #1: An in-class presentation of a literature review.
2. Task #2: A final presentation of a case study involving an applied research methodology.

Exam exemption: successfully completing both group-work tasks completely exempts students from taking a written exam for Module 2. Students who do not participate in the group-work tasks must take a final closed-book written exam for Module 2. This is administered in the Rimini Campus computer laboratory via EOL and consists of both open-ended and multiple-choice questions covering all Module 2 topics.

 

Final Grade Composition

The final grade (out of 30) for the Spatial Economics course will be determined by the average score obtained across the two modules:

• 50% Score for Module 1 (open-book exam: graph interpretation)
• 50% Score for Module 2 (two group presentations, or alternatively the final closed-book exam)

Note: Exceptional preparation, active participation, and strong engagement in classroom discussions across both modules can earn students additional bonus points.

 

Re-sit and Grade Improvement Options

• Retaking components: Students who do not achieve a passing grade overall, or who are unsatisfied with their final mark, may retake the assessment during any of the three official exam dates. Depending on their previous performance, they may choose to retake the exam for both modules or only one.
• Rejecting a passing grade: In line with university regulations, students are entitled to reject a passing grade (18/30 or higher) to attempt to improve it.
• One-time limit: This right to reject a passing grade can only be exercised once, regardless of whether the student chooses to retake the exam for a single module or the entire course program.

 

Note: AI can be a useful tool to assist individual study with in-depth analysis, summaries, and self-assessment paths. Regarding assessment of learning, a limited, declared, and non-substantial use of AI is permitted for supporting activities (summaries, reformulations). Substantial use for completing parts of the exam is not permitted.

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