TAILIEUCHUNG - A Companion to Urban Economics - Arnott and McMillen - Chapter 6

C H A P T E R S I X Monocentric Cities INTRODUCTION Anyone who is even a casual student of cities has noted that, within a particular city, the economic landscape can vary dramatically, especially with proximity to the central business district. | A Companion to Urban Economics Edited by Richard J. Arnott Daniel P. McMillen Copyright 2006 by Blackwell Publishing Ltd I CHAPTER S I X Monocentric Cities Marvin Kraus Introduction Anyone who is even a casual student of cities has noted that within a particular city the economic landscape can vary dramatically especially with proximity to the central business district. The cost of renting an apartment in the city proper can be hundreds of dollars per month higher than for a comparable apartment in an outlying suburb. And the choice might mean a difference between living in a high-rise apartment building city proper and a low-rise townhouse development outlying suburb . The monocentric city model is a descriptive model of resource allocation in a city that was designed to explain precisely such phenomena. Its basic development occurred in the 1960s and 1970s largely through the work of William Alonso Richard Muth and Edwin Mills Alonso 1964 Muth 1969 Mills 1972 . Since that time cities have become increasingly polycentric and the monocentric city model with its assumption of a single concentration of employment has been criticized on the grounds that the cities it explains are from a different era. My response to this criticism is twofold. First there are many urban areas for which the assumption of a single employment center serves as a reasonable approximation. But more importantly the economic forces that arise in monocentric cities are crucial to understanding polycentric cities and this makes the simpler monocentric city model the natural place to start. The objective of this essay is to take a monocentric city model that strikes a balance between richness and simplicity and set it out so that it is accessible to a student with no training in economic theory beyond an undergraduate course in micro theory. The chapter relies as much as possible on diagrammatic analysis and makes only minimal use of mathematics. The specific model we set out is taken from .

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