Reviews for Urban economics

The average rating for Urban economics based on 2 reviews is 4 stars.

Review # 1 was written on 2015-06-25 00:00:00 Lemur Lemurov By using the idea of substitution, the author makes urban economics very simple and intuitive. For example, buildings height variation within city is the result of substitution of land with capital. If one gets less land to build factories, he/she can compensate the lack of space by investing more capital, i.e. use more material/labor to build higher buildings. Assume that shipment cost of unit product is linearly dependent on distance from the center. If there is no substitution between land and capital, then the land rent should also be linear dependent on distance. That is because factories closer to the center can make more profits and thus can pay higher rents. However, if substitution is possible, then factories closer to the can compensate the lack of space by increase building heights. With more production space, the higher buildings can generate more profits and thus the owners can pay higher rents then those in the case of no substitution.

Review # 2 was written on 2016-07-26 00:00:00 Andrew Runge ,,