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From Neighborhoods to Nations:
The Economics of Social Interactions
Yannis M. Ioannides

Book Description | Reviews
Preface [in PDF format]

TABLE OF CONTENTS:

Preface xi

Chapter 1 Introduction 1

  • 1.1 From Urban Externalities to Urban Interactions 2
  • 1.2 Economies of Cities and New Economic Geography 6
  • 1.3 Urban Structure and Growth 8
  • 1.4 Urban Interactions, Politics, andUrban Design 9
  • 1.5 Moving Forward 9

Chapter 2 Social Interactions: Theory and Empirics 11

  • 2.1 Introduction 11
  • 2.2 A Simple Linear Model 14
  • 2.3 Endogenous Social Structure 22
  • 2.4 Nonlinear Models 30
  • 2.5 Why Experimental Data Can Help 38
  • 2.6 Endogenous Social Structure Revisited: Dynamics 44
  • 2.7 Econometrics of Social Interactions in Social Networks 53
  • 2.8 Spatial Econometrics Models as Social Interactions Models 61
  • 2.9 Social Learning in Urban Settings 64
  • 2.10 Conclusions 66
  • 2.11 Highlights of the Literature and Further Study 67
  • 2.12 Appendix: Basic Facts of Graph and Network Theory for Social Network Modeling 68
  • 2.13 Appendix: Survey of Micro Data Sources with Rich Contextual Information 71

Chapter 3 Location Decisions of Individuals and Social Interactions 79

  • 3.1 Introduction 79
  • 3.2 Aspatial Models of Location with Social Interactions 82
  • 3.3 An Exact Solution for Hedonic Prices in a Model of Sorting 88
  • 3.4 A Discrete Location Problem with Endogenous and Contextual Effects 95
  • 3.5 Endogenous Neighborhood Choice and Contextual Effects in Housing Decisions 97
  • 3.6 Spatial Clustering and Demographic Characteristics: Schelling's Models 115
  • 3.7 Hierarchical Models of Community Choice with Social Interactions 126
  • 3.8 Conclusion 134
  • 3.9 Appendices 135

Chapter 4 Location Decisions of Firms and Social Interactions 148

  • 4.1 Introduction 148
  • 4.2 Models of Location of Firms 150
  • 4.3 Location of Firms under Uncertainty 153
  • 4.4 Testing for Agglomeration 158
  • 4.5 Other Approaches to Studying Agglomeration Economies 169
  • 4.6 Empirical Evidence on Urbanization (Jacobs) Externalities: A Look from the Total Factor Productivity of Firms 180
  • 4.7 The Role of Inputs and Geography in Location Decisions of Firms 183
  • 4.8 Economic Geography Models for Firms' Location Decisions 188
  • 4.9 Risk Pooling by Firms in the Urban Economy 192
  • 4.10 Conclusion 198

Chapter 5 Social Interactions and Urban Spatial Equilibrium 200

  • 5.1 Introduction 200
  • 5.2 Urban Spatial Equilibrium with Social Interactions 206
  • 5.3 Location Decisions of Firms in Urban Space 212
  • 5.4 Monocentric versus Polycentric Models of the Urban Economy 217
  • 5.5 The Lucas-Rossi-Hansberg Models ofUrban Spatial Structure with Productive Externalities 219
  • 5.6 Neighborhood Effects and theGeometry of the Canonical Urban Model 226
  • 5.7 Transmission of Job-Related Information and Urban Equilibrium 234
  • 5.8 Choice of Job Matching and Spatial Structure 240
  • 5.9 Conclusions 246

Chapter 6 Social Interactions and Human Capital Spillovers 248

  • 6.1 Introduction 248
  • 6.2 Spatial Equilibrium 251
  • 6.3 Spatial Interactions and Spatial Economic Activity 253
  • 6.4 The Urban Wage Premium and Spatial Equilibrium 259
  • 6.5 Social Interactions and Human Capital Accumulation 268
  • 6.6 Social Interactions in Synthetic Neighborhoods 284
  • 6.7 Conclusions 286
  • 6.8 Guide to the Literature: Chapters 3-6 287

Chapter 7 Specialization, Intercity Trade, and Urban Structure 292

  • 7.1 Introduction 292
  • 7.2 Empirical Evidence on Urban Specialization and Diversification 294
  • 7.3 Simple Economics of Urban Specialization 297
  • 7.4 Specialization, Diversification, and Intercity Trade 306
  • 7.5 Equilibrium Urban Structure with Intercity Trade 318
  • 7.6 Richer Urban Structures 323
  • 7.7 The Role of Geography 326
  • 7.8 Labor Market Frictions in a System of Cities 330
  • 7.9 Modeling Lessons from the Empirics of Urban Specialization and Diversification 344
  • 7.10 Summary and Conclusions 346

Chapter 8 Empirics of the Urban Structure and Its Evolution 349

  • 8.1 Introduction 349
  • 8.2 Zipf's Law for Cities 350
  • 8.3 The Duranton Model of Endogenous City Formation 364
  • 8.4 The Hierarchy Principle 368
  • 8.5 Cities versus Metropolitan Areas versus Urban Places versus Densities versus Clusters 371
  • 8.6 Evolving Urban Structures with General Intradistribution Dependence 379
  • 8.7 Geography and Spatial Clustering 390
  • 8.8 Studies of Urban Structure Based on "Quasi-Natural Experiments" 393
  • 8.9 Global Aspects of City Size Distribution and Its Evolution 395
  • 8.10 Conclusion 396

Chapter 9 Intercity Trade and Long-Run Urban Growth 398

  • 9.1 Introduction 398
  • 9.2 Growth of Isolated Cities 401
  • 9.3 A Ventura-Type Model of Intercity Trade and Economic Growth 409
  • 9.4 Growth in an Economy of AutarkicCities 412
  • 9.5 Economic Integration, Urban Specialization, and Growth 420
  • 9.6 The Rossi-Hansberg-Wright Model of Urban Structure and Its Evolution 429
  • 9.7 Empirical Aspects of Urban Structure and Long-Run Urban Growth 434
  • 9.8 Sequential Urban Growth and Decay 440
  • 9.9 "Space: The Final Frontier?" 444
  • 9.10 Why Does a City Grow? 447
  • 9.11 Guide to the Literature for Chapters 7-9 448

Chapter 10 Urban Magic: Concluding Remarks 451

  • 10.1 Networks, Urban Infrastructure, and Social Interactions 452
  • 10.2 Graphs and the City 454
Notes 457
Bibliography 483
Index 517

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File created: 4/17/2014

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