An economic theory of cities : spatial models with capital, knowledge, and structures


An economic theory of cities : spatial models with capital, knowledge, and structures

Wei-Bin Zhang

(Lecture notes in economics and mathematical systems, 512)

Springer, c2002

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Bibliography: p. [204]-216

Includes index



Over more than two centuries the developmentofeconomic theory has created a wide array of different concepts, theories, and insights. My recent books, Capital and Knowledge (Zhang, 1999) and A TheoryofInternational Trade (Zhang, 2000) show how separate economic theories such as the Marxian economics, the Keynesian economics, the general equilibrium theory, the neoclassical growth theory, and the neoclassical trade theory can be examined within a single theoretical framework. This book isto further expand the frameworkproposed in the previous studies. This book is a part of my economic theory with endogenous population, capital, knowledge, preferences, sexual division of labor and consumption, institutions, economic structures and exchange values over time and space (Zhang, 1996a). As an extension of the Capital and Knowledge, which is focused on the dynamics of national economies, this book is to construct a theory of urban economies. We are concerned with dynamic relations between division of labor, division ofconsumption and determination of prices structure over space. We examine dynamic interdependence between capital accumulation, knowledge creation and utilization, economicgrowth, price structuresand urban pattern formation under free competition. The theory is constructed on the basisofa few concepts within a compact framework. The comparative advantage of our theory is that in providing rich insights into complex of spatial economies it uses only a few concepts and simplified functional forms and accepts a few assumptions about behavior of consumers, producers, and institutionalstructures.


1 Introduction.- 1.1 Von Thunen's Theory.- 1.2 Classical Location Theory.- 1.3 The Alonso Model and its Extensions.- 1.4 Imperfect Competition.- 1.5 Spatial Agglomeration.- 1.6 Spatial Structures with Population and Knowledge.- 1.7 City Systems.- 1.8 Nonlinear Spatial Economic Dynamics.- 1.9 The Purpose and Structure of the Book.- 2 Urban Growth with Housing and Spatial Structure.- 2.1 Urban Growth with Housing Production.- 2.2 The Dynamics in the Terms of K(t).- 2.3 Equilibrium and Stability.- 2.4 The Impact of the Population on Economic Geography.- 2.5 The Propensity to Hold Wealth and the Equilibrium Structure.- 2.6 On Extensions of the Basic Model.- A.2.1 Proving Proposition 2.1.- 3 Spatial Pattern Formation with Capital and Knowledge.- 3.1 The Urban Dynamics.- 3.2 Equilibrium and Stability.- 3.3 The Knowledge Accumulation Parameters.- 3.4 The Impact of Government Intervention in Research.- 3.5 The Working Conditions of Scientists.- 3.6 On Knowledge Creation and Spatial Economic Evolution.- A.3.1 Expressing the Variables in Terms of K and Z.- A.3.2 The Proof of Proposition 3.2.1.- 4 Urban Structure with Growth and Sexual Division of Labor.- 4.1 Growth with Sexual Division of Labor and Location.- 4.2 The Spatial Equilibrium Structure.- 4.3 Sexual Productivity Differences and Economic Structure.- 4.4 Remarks.- A.4.1 Proving Proposition 4.2.1.- 5 Dynamic Urban Pattern Formation with Heterogeneous Population.- 5.1 The Urban Growth with Two Groups.- 5.2 Separation of the Groups' Residential Location.- 5.3 Economic Equilibrium and Stability.- 5.4 The Impact of Savings Rates.- 5.5 The Impact of Human Capital.- 5.6 On Urban Evolution with Multiple Groups.- A.5.1 Proving Lemma 5.3.1.- A.5.2 Proving Lemma 5.3.2.- 6 Two-Group Spatial Structures with Capital and Knowledge.- 6.1 The Spatial Economy with Heterogeneous Population.- 6.2 Temporary Urban Pattern.- 6.3 Long-Run Equilibria and Stability Conditions.- 6.4 The Impact of Creativity.- 6.5 The Impact of the Population.- 6.6 On Urban Evolution with Heterogeneous Population.- A.6.1 Proving Lemma 6.2.2.- A.6.2 Proving Proposition 6.3.1.- 7 Urban Growth and Pattern Formation with Preference Change.- 7.1 The Model.- 7.2 Properties of the Dynamic System.- 7.3 Human Capital and the Economic Structure.- 7.4 On Preference Change and Urban Pattern.- A.7.1 Proving Lemma 7.2.1.- 8 Urban-Rural Division of Labor with Spatial Amenities.- 8.1 The Spatial Structure with Urban-Rural Areas.- 8.2 Spatial Equilibria.- 8.3 Amenities and Economic Geography.- 8.4 On Spatial Equilibrium Structure.- A.8.1 Proving Proposition 8.2.1.- 9 Spatial Equilibrium with Multiple Cities.- 9.1 The Model.- 9.2 Urban Equilibria.- 9.3 The Impact of Amenities upon the Urban Structure.- 9.4 Concluding Remarks.- A.9.1 Proving Proposition 9.2.1.- 10 Growth with International Trade and Urban Pattern Formation.- 10.1 The Model.- 10.2 The Dynamic Properties of the Trade System.- 10.3 Country 1's Propensity to Own Wealth.- 10.4 Country Ps Working Efficiency.- 10.5 On International Trade and Spatial Structures.- A.10.1 Proving Proposition 10.2.1.- A.10.2 Proving Proposition 10.2.2.- 11 Nonlinear Dynamics of a Multi-City System.- 11.1 An Isolated Island Economy.- 11.2 Economic Geographic Cycles in the Isolated Island Economy.- 11.3 Aperiodic Oscillations in the J-Island Economy.- 11.4 On Spatial Chaos.- A.11.1 The Dynamics of Capital and the Population.- 12 Further Issues on Cities.- Author Index.

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