Richard J. Arnott is Professor of Economics at Boston College, Massachusetts. His recent research focuses on the economics of urban transportation and he is author of Alleviating Urban Traffic Congestion (with Tilmann Rave and Ronnie Schöb, 2005). He has extensive editorial experience, including serving as an editor for the journals Regional Science and Urban Economics and Journal of Economic Geography and for the books Public Economics: Selected Papers by William Vickrey (1994) and Economics for an Imperfect World: Essays in Honor of Joseph E. Stiglitz (2003). Daniel P. McMillen is Professor of Economics at the University of Illinois at Chicago, and a member of the Institute of Government and Public Affairs. His articles have been published in such journals as Review of Economics and Statistics, Journal of Urban Economics, Regional Science and Urban Economics, Journal of Business and Economic Statistics, and Real Estate Economics. He is co-author, with John McDonald, of Urban Economics and Real Estate: Theory and Policy (Blackwell, 2007).

“Provides a broader and more accessible summary of the state of economists’ knowledge about cities...succeeds marvelously in its stated task of providing a fascinating set of essays...an enjoyable book that is a significant contribution to the field.”Journal of Regional Science

• List of Figures viiiList of Tables xiNotes on Contributors xiiiPreface xxPART I URBANIZATION1 The Micro-Empirics of Agglomeration Economies 7Stuart S. Rosenthal and William C. Strange2 Human Capital Externalities in Cities: Identification and Policy Issues 24Gilles Duranton3 The First Cities 40Arthur O’Sullivan4 Cross-Country Patterns of Urban Development 55Stephen MalpezziPART II URBAN LAND USE5 The Spatial Pattern of Land Use in the United States 77Elena G. Irwin and Nancy E. Bockstael6 Monocentric Cities 96Marvin Kraus7 Space in General Equilibrium 109Marcus Berliant and Courtney LaFountain8 Testing for Monocentricity 128Daniel P. McMillenPART III HOUSING AND REAL ESTATE9 The Economic Theory of Housing Tenure Choice 145Franz Hubert10 Housing Policy: Low-Income Households in France 159Anne Laferrère and David Le Blanc11 Housing Demand: An International Perspective 179Miki Seko12 Discrimination in Mortgage Lending 197Anthony M. Yezer13 Commercial Real Estate 211David Geltner14 Housing Price Indexes 228Bradford CasePART IV URBAN TRANSPORTATION15 Urban Transport Economic Theory 245Yoshitsugu Kanemoto16 Urban Passenger Travel Demand 261André de Palma, Robin Lindsey, and Nathalie Picard17 Urban Transportation and Land Use 281John F. McDonald18 Urban Transport Policies: The Dutch Struggle with Market Failures and Policy Failures 292Piet RietveldPART V URBAN PUBLIC ECONOMICS19 Financing Cities 311Robert P. Inman20 Strategic Interaction among Governments 332Jan K. Brueckner21 Property and Land Taxation 348John Douglas Wilson22 A Theory of Municipal Corporate Governance with an Application to Land-Use Regulation 372William A. FischelPART VI URBAN LABOR MARKETS AND MACROECONOMICS23 Urban Labor Markets 389Timothy J. Bartik and Randall W. Eberts24 A Primer on Spatial Mismatch within Urban Labor Markets 404Keith R. Ihlanfeldt25 Urban Labor Economic Theory 418Yves Zenou26 Macroeconomic Analysis Using Regional Data: An Application to Monetary Policy 440Gerald A. Carlino and Robert H. DeFina27 Measuring and Analyzing Urban Employment Fluctuations 460N. Edward CoulsonPART VII QUALITY OF LIFE28 Measuring Quality of Life 483Glenn C. Blomquist29 Air Pollution in Cities 502Matthew E. Kahn30 Urban Crime, Race, and the Criminal Justice System in the United States 515Steven Raphael and Melissa Sills31 Ethnic Segregation and Ghettos 536Alex AnasIndex 555

Richard J. Arnott is Professor of Economics at Boston College, Massachusetts. His recent research focuses on the economics of urban transportation and he is author of Alleviating Urban Traffic Congestion (with Tilmann Rave and Ronnie Schöb, 2005). He has extensive editorial experience, including serving as an editor for the journals Regional Science and Urban Economics and Journal of Economic Geography and for the books Public Economics: Selected Papers by William Vickrey (1994) and Economics for an Imperfect World: Essays in Honor of Joseph E. Stiglitz (2003). Daniel P. McMillen is Professor of Economics at the University of Illinois at Chicago, and a member of the Institute of Government and Public Affairs. His articles have been published in such journals as Review of Economics and Statistics, Journal of Urban Economics, Regional Science and Urban Economics, Journal of Business and Economic Statistics, and Real Estate Economics. He is co-author, with John McDonald, of Urban Economics and Real Estate: Theory and Policy (Blackwell, 2007).

“Provides a broader and more accessible summary of the state of economists’ knowledge about cities...succeeds marvelously in its stated task of providing a fascinating set of essays...an enjoyable book that is a significant contribution to the field.”Journal of Regional Science

• List of Figures viiiList of Tables xiNotes on Contributors xiiiPreface xxPART I URBANIZATION1 The Micro-Empirics of Agglomeration Economies 7Stuart S. Rosenthal and William C. Strange2 Human Capital Externalities in Cities: Identification and Policy Issues 24Gilles Duranton3 The First Cities 40Arthur O’Sullivan4 Cross-Country Patterns of Urban Development 55Stephen MalpezziPART II URBAN LAND USE5 The Spatial Pattern of Land Use in the United States 77Elena G. Irwin and Nancy E. Bockstael6 Monocentric Cities 96Marvin Kraus7 Space in General Equilibrium 109Marcus Berliant and Courtney LaFountain8 Testing for Monocentricity 128Daniel P. McMillenPART III HOUSING AND REAL ESTATE9 The Economic Theory of Housing Tenure Choice 145Franz Hubert10 Housing Policy: Low-Income Households in France 159Anne Laferrère and David Le Blanc11 Housing Demand: An International Perspective 179Miki Seko12 Discrimination in Mortgage Lending 197Anthony M. Yezer13 Commercial Real Estate 211David Geltner14 Housing Price Indexes 228Bradford CasePART IV URBAN TRANSPORTATION15 Urban Transport Economic Theory 245Yoshitsugu Kanemoto16 Urban Passenger Travel Demand 261André de Palma, Robin Lindsey, and Nathalie Picard17 Urban Transportation and Land Use 281John F. McDonald18 Urban Transport Policies: The Dutch Struggle with Market Failures and Policy Failures 292Piet RietveldPART V URBAN PUBLIC ECONOMICS19 Financing Cities 311Robert P. Inman20 Strategic Interaction among Governments 332Jan K. Brueckner21 Property and Land Taxation 348John Douglas Wilson22 A Theory of Municipal Corporate Governance with an Application to Land-Use Regulation 372William A. FischelPART VI URBAN LABOR MARKETS AND MACROECONOMICS23 Urban Labor Markets 389Timothy J. Bartik and Randall W. Eberts24 A Primer on Spatial Mismatch within Urban Labor Markets 404Keith R. Ihlanfeldt25 Urban Labor Economic Theory 418Yves Zenou26 Macroeconomic Analysis Using Regional Data: An Application to Monetary Policy 440Gerald A. Carlino and Robert H. DeFina27 Measuring and Analyzing Urban Employment Fluctuations 460N. Edward CoulsonPART VII QUALITY OF LIFE28 Measuring Quality of Life 483Glenn C. Blomquist29 Air Pollution in Cities 502Matthew E. Kahn30 Urban Crime, Race, and the Criminal Justice System in the United States 515Steven Raphael and Melissa Sills31 Ethnic Segregation and Ghettos 536Alex AnasIndex 555