An economic theory of cities. Spatial models with capital, knowledge, and structures (Q5950829)

Numerous contributions to urban economics have followed the equilibrium theory of urban land marked pioneered by Alonso who adapted von Thünen's theory on an urban context. In the introduction the author gives an overview of the Alonso's model, different its extensions and the literature in location theory and urban economics. Then a systematic theoretical exposition of urban economics within a compact framework is developied. The purpose of the book is not the building of a more general theory than the existing, but showing a direction and a compact theoretical framework in which varied theories can be connected to each other in a consistent way. The author started with the two-sector growth model with endogenous residential location in an isolated state. Problems of stable equilibrium, the impact of changes in parameters on long-run growth are studied. In the chapter 3 the extension of the previous model to explain urban dynamic with knowledge as an endogenous variable is considered. Under some conditions dynamics are described by two-dimensional differential equations which are studied. The main purpose of the next chapter is to introduce family economics in spatial economic structure. Then a dynamic model with population divided into two groups with different saving rates and human capital is considered. In the next chapter the author treats knowledge as an endogenous variable for the two-group model. Problems of influence of economic development on income and wealth of various groups are studied. The author also considers a one-city and one-farm spatial system, two-country growth models, models for explanation differences in living costs between cities. An example of application of nonlinear dynamic methods for describing urban complexity is extensively discussed. In all chapters the author pays much attention to problems of the existence of stable equilibrium, long-run growth and effects of changes in systems parameters. Possible extensions conclude the book.