10HotTopicsin

UrbanEconomics
(including HousingEconomics)
ChristianHilber
LondonSchoolofEconomics

HotTopicsrelatedto
LandandHousingMarkets
1. Costsandbenefitsoflanduseplanning
Benefitsidewellknowbutcostsarelargelyignored
Regulatorycost=reasonforaffordabilitycrisisincountriessuchasUK?
Recommendedreadings:CheshireandHilber(2008,EconomicJournal);Hilber
andVermeulen(2010,FinalReport,DepartmentforCLG)

2. Housingbubbles:theroleoflendingstandardsandsupplyconstraints

Whichfactorscausedthehousingbubble?
Isitreallyabubble(=pricesdeviatefromfundamentals)?
Roleoflooseningoflendingstandardsandsupplyconstraints
Recommendedreadings:Glaeseretal.(2010,HarvardKennedySchoolPolicy
Briefs),Glaeseretal.(2008,JournalofUrbanEconomics),Duca etal.(2011a
andb,SERCDPs););HilberandVermeulen(2010,FinalReport,Departmentfor
CLG)

HotTopicsrelatedto
LandandHousingMarkets(cont.)
3. Homeownership,mortgagedefaultsandthecreditcrunchcrisis
Whichfactorscausedhousingbubble?
Isitreallyabubble(=pricesdeviatefromfundamentals)?
Roleoflooseningoflendingstandards(andlanduseplanning,seehottopic
1above)
Recommendedreadings:Mian andSufi(forthcoming,AmericanEconomic
Review),HilberandTurner(2010,SERCDP)

4. Greenbuildings&sustainability

Whatistheeconomicvalueofthecertificationofgreenbuildings?
Preliminaryresultssuggestthatgreenbuildingscommandhigherrentsandselling
prices?
Whatarethecausesofthesepricepremiums?
Recommendedreading:Eichholtz etal.(2010,AmericanEconomicReview)

HotTopicsrelatedtoGrowthofCities
andProductivity
5. AgglomerationEconomies(ahottopicsince20years!)

Whattypesofagglomerationforcesfacilitatestrongeconomicgrowthincities(e.g.,
specialization,competition,diversification)?
Whatarethebenefitsandcostsofagglomerations?
Howimportantarethebenefitsandcostseconomically(attempttoquantifymagnitude)
Recommendedreadings:Combesetal.(2009,CEPRDP),Combesetal.(2011,Journalof
EconomicGeography)

6. Entrepreneurshipandthecity

Whatmakesacityentrepreneurial?
Whydosomecitieshavemanyentrepreneursandothersdont?
Whatkindofentrepreneursencouragegrowth?

Recommendedreadings:Glaeseretal.(2010aand2010b,JournalofUrbanEconomics)

7. Productivityintheretailsector

Whatfactorsdetermineretailproductivity?
Doeslanduseplanningreduceproductivity?
Whatistheroleofentrybarriers?
Recommendedreadings:Cheshireetal.(2011,SERCDP),Schivardi andViviano (2011,
EconomicJournal)

HotTopicsrelatedtoEquityIssuesand
theFutureofCities
8. Realearningsdisparities&decliningplaces

Howbigaredisparitiesreallywhenaccountingforhousingcosts?
Towhatextentaredisparitiesdrivenbysortingofskilledhouseholdsintomore
productiveplaces?
Recommendedreadings:Combesetal.(2008,JournalofUrbanEconomics),Gibbonset
al. (2011,SERCDP)

9. Informationtechnologyandurbanstructure:Docitieshaveafuture?
Willtheymakecitiesobsoleteormoreimportant?
Howeasytooutsourcetasks/rolesocialinteractions
Recommendedreading:SinaiandWaldfogel (2004,JournalofUrbanEconomics),
Ioannidesetal.(2008,EconomicPolicy)

10. Spatialimpactofglobalization/theroleoftransportcosts&transport
infrastructureinvestments

Willglobalizationcausecitiesindevelopedcountriestolooseout?
WillmanufacturingproductiondisappearinWesternEuropeandtheUS?
Costbenefitanalysisoftransportinfrastructureinvestment
DoISinvestmentshelpovercomespatialdisparities?

Recommendedreadings:Krugman (1991),Glaeser(2011)

References

Cheshire,P.andC.A.L.Hilber(2008).OfficeSpaceandSupplyRestrictionsin
Britain:ThePoliticalEconomyofMarketRevenge.EconomicJournal,Vol.118,
F185F221.

Cheshire,P.,C.A.L.HilberandI.Kaplanis(2011).EvaluatingtheEffectsofPlanning
PoliciesontheRetailSector:ordoTownCentreFirstPoliciesDelivertheGoods?
SERCDiscussionPaper,No.66,January.

Combes,P.P.,G.Duranton,L.Gobillon(2008).Spatialwagedisparities:Sorting
matters!JournalofUrbanEconomics,Vol.63,723742.

Combes,P.P.,G.Duranton,L.Gobillon,D.PugaandS.Roux(2009).The
productivityadvantagesoflargecities:distinguishingagglomerationfromfirm
selection.London:CEPRDiscussionPaper,No.7191.

Combes,P.P.,G.DurantonandL.Gobillon (2011).Theidentificationof
agglomerationeconomies.JournalofEconomicGeography,Vol.11(2),253
266.

References(cont.)
Duca,J.V.,J.Muellbauer,A.Murphy(2011).HousePricesandCredit
Constraints:MakingSenseoftheU.S.Experience.SERCDiscussionPaper,
No.77,March.
Duca,J.V.,J.Muellbauer,A.Murphy(2011).ShiftingCreditStandardsand
theBoomandBustinU.S.HousePrices.SERCDiscussionPaper, No.76,
March.
Eichholtz,P.,N.Kok andJ.M.Quigley(2010).DoingGood?GreenOffice
Buildings.AmericanEconomicReview,Vol.100(5),24922509.
Gibbons,S.,H.G.Overman,G.Resende (2011).RealEarningsDisparitiesin
Britain.SERCDiscussionPaper,No.65,January.
Glaeser,E.L.(2011).TriumphoftheCity.London.McMillan.

References(cont.)

Glaeser,E.L.,J.GottliebandJ.Gyourko(2010).DidCreditMarketPoliciesCause
theHousingBubble?HarvardKennedySchoolPolicyBriefs,May.

Glaeser,E.L.,J.GyourkoandA.Saiz(2008).Housingsupplyandhousingbubbles.
JournalofUrbanEconomics,Vol.64,198217.

Glaeser,E.L.,S.S.RosenthalandW.C.Strange(2010a).UrbanEconomicsand
Entrepreneurship.JournalofUrbanEconomics,Vol.67,114.

Glaeser,E.L.,W.R.KerrandG.A.M.Ponzetto (2010b).Clustersofentrepreneurship.
JournalofUrbanEconomics,Vol.67,150168.

Hilber,C.A.L.andT.M.Turner(2010).Themortgageinterestdeductionandits
impactonhomeownershipdecisions.SERCDiscussionPaper,No.55,September.

Hilber,C.A.L.andW.Vermeulen(2010).TheImpactofRestrictingHousingSupply
onHousePricesandAffordability.FinalReport.DepartmentforCommunitiesand
LocalGovernment,November.(www.communities.gov.uk/documents/housing/pdf/1767142.pdf)

References(cont.)

Ioannides,Y.,H.G.Overman,E.RossiHansberg andK.Schmidheiny (2008).The

effectofInformationandCommunicationTechnologiesonUrbanStructure.
EconomicPolicy,54,201242.

Krugman,P.(1991).GeographyandTrade.Cambridge(MA):MITPress.

Mian,A.R.andA.Sufi(forthcoming).HousePrices,HomeEquityBasedBorrowing,
andtheU.S.HouseholdLeverageCrisis.ForthcomingAmericanEconomicReview.
(DownloadableasChicagoBoothResearchPaperNo.0920)

Schivardi,F.andE.Viviano (2011).EntryBarriersinRetailTrade.EconomicJournal,
121(551),145170.

SinaiandWaldfogel (2004).GeographyandtheInternet:istheInterneta
substituteoracomplementforcities?JournalofUrbanEconomics,56(1),124.