Syllabus

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Course description

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This course helps students and future urban planners know how theories of urban economics can be applied in land use planning practices, both quantitatively and qualitatively. The course also introduces the basic theories of real estate markets and land use planning practices from an international perspective. In particular, the concerns of efficiency, equality, sustainability, and inclusiveness are embedded in the discussion in the international comparison. By learning this course, students will not only have access to the knowledge of land economics and planning theories but will also be actively engaged in solving urban problems as urban economists with an international horizon.

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The four sections are as follows. In Section I, the students will learn basic theories of urban economics and evaluation methods of land use planning. There will also be a segment on market analysis and the role of government which will help students understand the significance of urban planning. In Section II, the students will learn how economists analyze two types of real estate markets from both micro and macro perspectives. In Section III, the role of government, planning and policy selection (e.g. public finance) are further emphasized from longitudinal and regional perspectives. In particular, the students will learn advanced analysis tools including time series models and observe the land market by data as well as by intuition. Also, they will understand the detailed implementation of land use planning, especially impact fees, through calculation and practical exercises.

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After the stressful learning of Section II and III, the last section will be students’ “showtime.” It provides an open discussion on the problems of planning practice in developing and developed countries. Students are encouraged to critically analyze the institutional factors and externalities of markets under different planning systems all over the world.

Course requirements

• 20% - Attendance and class participation

• 30% - Assignments (20% - Quiz, 10% - Assignment 2)

• 50% - Final papers (APA format, 10-15 pages) and 15- minute presentation

• Five voluntary in-class presentations for gaining extra credits. Each presentation is 15 minutes. Once in a week. The extra credits will be no more than 10 credits

• Readings in Section IV should be finished before the class.

Prerequisites

• Preliminary knowledge on micro economics and statistics

• Mankiw Greg (2012).  Principle of Economics, 6th, Harvard University Press (or previous editions)

Worth downloading

• Vernon Henderson (2004). North-Holland Handbook of Urban and Regional Economics, Vol. 4. (http://www.econ.brown.edu/faculty/henderson/handbook.html.)

• MIT Open class (http://ocw.mit.edu/courses/urban-studies-and-planning/11-433j-real-estate-economics-fall-2008/lecture-notes/)

 

Section I    Urban economics and planning:  basic theories

Week 1 Urban land market

Readings

• Chapter 3 John F. McDonald and Daniel P. McMillen (2010). Urban Economics & Real Estate. 2. Malden, MA: Blackwell.

• Chapter 1 and 2, Alan W. Evans (2004). Economics & Land Use Planning. Blackwell Publishing.

• Chapter 1, 2, and 4, Alan W. Evans (2004). Economics, Real Estate &the Supply of Land Blackwell Publishing.

Week 2 Evaluation and planning

Readings

• Chapter 3, Alan W. Evans (2004). Economics & Land Use Planning. Blackwell Publishing.

• Rabinowitz, Alan (2004). Urban Economics and Land Use in America: The Transformation of Cities in the Twentieth Century, M.E. Sharpe, Armonk, New York & London, England. (Chapter I and V are required, the other chapters are recommended)

 

Section II   Land economics and real estate market

Week 3 Micro analysis: Residential real estate market

Readings

• Chapter 4, John F. McDonald and Daniel P. McMillen (2010). Urban Economics & Real Estate. 2. Malden, MA: Blackwell.

 

Week 4 Micro analysis: Non-residential real estate market

Readings

• Chapter 5 and 6, John F. McDonald and Daniel P. McMillen (2010). Urban Economics & Real Estate. 2. Malden, MA: Blackwell.

 

Week 5 Macro analysis: Residential real estate market

Readings

• Chapter 8 and 9, John F. McDonald and Daniel P. McMillen (2010). Urban Economics & Real Estate. 2. Malden, MA: Blackwell.

Week 6 Macro analysis: Non-residential real estate market

Readings

• Chapter 11 and 12, John F. McDonald and Daniel P. McMillen (2010). Urban Economics & Real Estate. 2. Malden, MA: Blackwell.

Assignment 1:  Quiz

 

Section III   Market estimation, public finance and public policies

Week 7 Research methodology: Time series analysis

Readings

• Raymond Y.C. Tse (1997). An application of the ARIMA model to real-estate prices in Hong Kong, Journal of Property Finance, Vol. 8 No. 2, pp. 152-163. 

• Stephen Lee, Colin Lizieri and Charles Ward (2000). The Time Series Performance Of UK Real Estate Indices (http://reri.org/research/article_pdf/wp94.pdf)

Reference

• Gujarati N.D. (2004). Basic Econometrics, 4th, The McGraw-Hill Companies (https://www.hse.ru/data/2014/05/24/1324640040/Gujarati%20D.N.%20Basic%20Econometrics,%203e,%201995.pdf)

• Ratnadip Adhikari and R. K. Agrawal. An Introductory Study on Time Series Modeling and Forecasting (https://arxiv.org/ftp/arxiv/papers/1302/1302.6613.pdf)

• PPT of Time Series and Stata code (http://www.princeton.edu/~otorres/TS101.pdf)

 

Assignment 2:  Data collection and topic selection for final papers

 

Week 8 Impact fees and growth management

Readings

• Part 2 and 3, Arthur C. Nelson, James C. Nicholas, Julian C. Juergensmeyer (2009). Impact Fees: Principles and Practice of Proportionate-Share Development Fees, APA Planner Press, Chicago & Washington, D.C.

• Vicki Been (2005). Impact fees and housing affordability, Cityscape, Vol. 8, No.1, pp. 139-185.

• Xiaofang Dong, Shihe Fu and Yufei Yuan (2013). Impact Fees and Real Estate Prices: Evidence from Thirty-five Chinese Cities (http://121.192.176.75/repec/upload/2013128859217055475115776.pdf)

• APA Policy Guide on Impact Fees https://www.planning.org/policy/guides/adopted/impactfees.htm

 

Week 9 Public finance, government and land market

Readings

• Chapter 13 and 14, John F. McDonald and Daniel P. McMillen (2010). Urban Economics & Real Estate. 2. Malden, MA: Blackwell.

• Roy Bahl & Richard M. Bird (2014). Decentralization and infrastructure: principles and practice, International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1408, (http://icepp.gsu.edu/files/2015/03/ispwp1408.pdf)

• Roy Bahl (2012). Metropolitan city finances in India: Options for a new fiscal architecture, International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1233, (https://ideas.repec.org/p/ays/ispwps/paper1233.html)

 

Week 10 Urban form, regional growth and market

Readings

• Chapter 5 and 7, John F. McDonald and Daniel P. McMillen (2010). Urban Economics & Real Estate. 2. Malden, MA: Blackwell.

• Chengri Ding and Erik Lichtenberg (2011). Land and urban economic growth in China, Journal of Regional Science, Vol. 51, No. 2, pp. 299–317.  (http://smartgrowth.umd.edu/assets/land_and_urban_economic_growth_china.pdf)

Deadline for topic selection and outline submission for final papers

 

Section IV     Land use policy and planning practices based on international cases studies

Week 11 Case studies in America and Europe

Keynote speaker: TBA (on community livability, TOD, etc.)

Readings

• United States Department of the Interior Bureau of Land Management (2005). Land Use Planning Handbook (http://www.blm.gov/style/medialib/blm/ak/aktest/planning/planning_general.Par.65225.File.dat/blm_lup_handbook.pdf)

• Bruce Katz and Robert Lang, Eds. (2003). Redefining urban and suburban America: Evidence from Census 2000, Vol. 1. Washington, DC: Brookings.

Reference

Community livability (http://www.vtpi.org/tdm/tdm97.htm and http://www.vtpi.org/tdm/tdm104.htm)

 

Week 12 Case studies in Asian countries

Readings

       India

• The Land Acquisition, Rehabilitation and Resettlement Bill, 2011 http://www.prsindia.org/uploads/media/Land%20and%20R%20and%20R/Land%20Acquisition,%20Rehabilitation%20and%20Resettlement%20Bill%202011.pdf

• J.O'S (2015). The Economist explains: The fight over India's land laws, Apr 20th. The Economist (http://www.economist.com/blogs/economist-explains/2015/04/economist-explains-18)

• Nikita Sud (2014). Governing India’s land, World Development Vol. 60, pp. 43–56

• John Gibson. Geua Boe-Gibson, Glen Stichbury (2015). Urban land expansion in India 1992–2012, Food Policy, Vol. 56, pp. 100–113.

• Priti Parikh, Kun Fu, Himanshu Parikh, Allan Mcrobie and Gerard George (2015). Infrastructure provision, gender, and poverty in Indian slums, World Development Vol. 66, pp. 468–486.

•  “Land administration is the first step to land development and economic growth.” Geospatial Today 19 Mar. 2014. General OneFile. Web. 13 Aug. 2016. (http://go.galegroup.com/ps/i.do?p=ITOF&u=gain40375&id=GALE|A362134048&v=2.1&it=r&sid=summon&userGroup=gain40375&authCount=1)

       China

• Lei Zhang, Yumin Ye, and Jiao Chen (2016). Urbanization, informality and housing inequality in indigenous villages: A case study of Guangzhou, Land Use Policy, Vol. 58, No.15, pp. 32–42.

• Jieming Zhu (2002). Urban development under ambiguous property rights: a case of China’s transition economy, International Journal of Urban and Regional Research, Vol. 26, No. 1, pp. 41-57.

• Tao Liu, Guangzhong Cao, Yan Yan, Raymond Yu Wang (2016). Urban land marketization in China: Central policy, local initiative, and market mechanism, Land Use Policy, Vol. 57, 30, pp.265–276.

 

Week 13 Case studies in Latin American

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• Gabriel Ondetti (2016). The social function of property, land rights and social welfare in Brazil, Land Use Policy, Vol.50, pp. 29–37.

• Gabriele Salvoa et al. (2015). Estimating the human appropriation of land in Brazil by means of an Input–Output Economic Model and Ecological Footprint analysis, Ecological Indicators, 53, pp. 78–94.

• Kenan Handzic (2010). Is legalized land tenure necessary in slum upgrading? Learning from Rio's land tenure policies in the Favela Bairro Program, Habitat International, Vol. 34, 11–17.

Recommended movie

City of God (2002)

 

Week 14 African studies

Readings

• Stuart Paul Denoon-Stevens (2016). Developing an appropriate land use methodology to promote spatially just, formal retail areas in developing countries: The case of the City of Cape Town, South Africa. Land Use Policy, Vol. 54, 18–28.

 

Presentation of final papers (15 minutes for each one)