Econ 330: Urban EconomicsLecture 01Andrew Dickinson07 October, 20211 / 37

Day One Two: Welcome!2 / 37

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scale 80%

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Introduction: About me

Name: Andrew Dickinson (please call me Andrew)

Office: PLC 417, Office Hours: TBD^†, Email: adickin3@uoregon.edu

†: I will hold office hours on Monday starting at 10 am. Not the official time yet

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Introduction: About me

Name: Andrew Dickinson (please call me Andrew)

Office: PLC 417, Office Hours: TBD^†, Email: adickin3@uoregon.edu

†: I will hold office hours on Monday starting at 10 am. Not the official time yet

Third year PhD student researching:
- Applied micro topics related to environmental economics
- Causal inference, ML, and data science

4 / 37

Introduction: About me

Name: Andrew Dickinson (please call me Andrew)

Office: PLC 417, Office Hours: TBD^†, Email: adickin3@uoregon.edu

†: I will hold office hours on Monday starting at 10 am. Not the official time yet

Third year PhD student researching:
- Applied micro topics related to environmental economics
- Causal inference, ML, and data science

Not school:

From San Diego, CA
I enjoy spending time outside 🤙

4 / 37

Introduction: About me

Name: Andrew Dickinson (please call me Andrew)

Office: PLC 417, Office Hours: TBD^†, Email: adickin3@uoregon.edu

†: I will hold office hours on Monday starting at 10 am. Not the official time yet

Third year PhD student researching:
- Applied micro topics related to environmental economics
- Causal inference, ML, and data science

Not school:

From San Diego, CA
I enjoy spending time outside 🤙
- 🏃, 🏕, 🧗, 🏄, ⛷, 🛶, 🚵‍♂️, etc.

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Introduction: About you

I hope that you:

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Introduction: About you

I hope that you:

Are an eager student ready to learn about urban econ

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Introduction: About you

I hope that you:

Are an eager student ready to learn about urban econ
Have passed EC-201 with at least some recollection of the material

5 / 37

Introduction: About you

I hope that you:

Are an eager student ready to learn about urban econ
Have passed EC-201 with at least some recollection of the material
Excited to be back in class in person

5 / 37

Introduction: About you

I hope that you:

Are an eager student ready to learn about urban econ
Have passed EC-201 with at least some recollection of the material
Excited to be back in class in person
Own plenty of masks for the remainder of the quarter

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Schedule

Today:

(i). Syllabus + Course Policies

(ii). General Economics Discussion

(iii). Intro to Urban Economics

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Schedule

Today:

(i). Syllabus + Course Policies

(ii). General Economics Discussion

(iii). Intro to Urban Economics

Upcoming:

EC201 review
Reading
PS01

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Syllabus

All information is on the syllabus

Please read the syllabus and consult it first before sending emails!

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Syllabus

All information is on the syllabus

Please read the syllabus and consult it first before sending emails!

I want to discuss the following:

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Syllabus

All information is on the syllabus

Please read the syllabus and consult it first before sending emails!

I want to discuss the following:

(i). Course policies

(ii). Grades and grading

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Syllabus: Zoom ground rules8 / 37

Syllabus: Zoom ground rules

(i). Turn your camera on

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Syllabus: Zoom ground rules

(i). Turn your camera on

(ii). Mute mics when not talking

8 / 37

Syllabus: Zoom ground rules

(i). Turn your camera on

(ii). Mute mics when not talking

(iii). Do not share images or recordings

8 / 37

Syllabus: Zoom ground rules

(i). Turn your camera on

(ii). Mute mics when not talking

(iii). Do not share images or recordings

(iv). Feel free to interupt me or "raise hand"

(v). Keep the chat open and use it

(vi). If there is any technical difficulties tell me

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Syllabus: Zoom ground rules

(i). Turn your camera on

(ii). Mute mics when not talking

(iii). Do not share images or recordings

(iv). Feel free to interupt me or "raise hand"

(v). Keep the chat open and use it

(vi). If there is any technical difficulties tell me

No passwords are turned on for now but we will see if we get bombed

8 / 37

Syllabus: Zoom ground rules

(i). Turn your camera on

(ii). Mute mics when not talking

(iii). Do not share images or recordings

(iv). Feel free to interupt me or "raise hand"

(v). Keep the chat open and use it

(vi). If there is any technical difficulties tell me

No passwords are turned on for now but we will see if we get bombed

I will try and start the meeting a little early + stay on for OH

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Syllabus: Attendence9 / 37

Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

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Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

The expectation is that you attend class every day

9 / 37

Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

The expectation is that you attend class every day

The midterm & final will be administered during class time

9 / 37

Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

The expectation is that you attend class every day

The midterm & final will be administered during class time

The quality of these lectures increase with participation and attendance

9 / 37

Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

The expectation is that you attend class every day

The midterm & final will be administered during class time

The quality of these lectures increase with participation and attendance

Obviously, given the circumstances there exists some flexibility

If you must isolate, I will provide you with additional course materials

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Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

The expectation is that you attend class every day

The midterm & final will be administered during class time

The quality of these lectures increase with participation and attendance

Obviously, given the circumstances there exists some flexibility

If you must isolate, I will provide you with additional course materials

Complete slides will be posted to GitHub sometime after lecture^†

† More to talk about this next slide

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Syllabus: Lectures

When I taught this class remotely, I made slides

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Syllabus: Lectures

When I taught this class remotely, I made slides

However, I have a strong preference to use the board

Slower; keeps a good pace

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Syllabus: Lectures

When I taught this class remotely, I made slides

However, I have a strong preference to use the board

Slower; keeps a good pace

I may not have time to adapt the slides into lecture notes

If I use slides, I will post them to a public Github Repository

They will not include any annotations (examples)

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Syllabus: Lectures

When I taught this class remotely, I made slides

However, I have a strong preference to use the board

Slower; keeps a good pace

I may not have time to adapt the slides into lecture notes

If I use slides, I will post them to a public Github Repository

They will not include any annotations (examples)

Teach through examples

Walk through many "important examples" on the board 😉

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Syllabus: Grading

There are 500 points total. Your grade will be determined by:

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Syllabus: Grading

There are 500 points total. Your grade will be determined by:

40%: Final Exam (1x): 200 points
30%: Midterm Exam (1x): 150 points
25%: Problem sets (4x): 25 points each
10%: Book Report (1x): 50 points

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Syllabus: Grading

There are 500 points total. Your grade will be determined by:

40%: Final Exam (1x): 200 points
30%: Midterm Exam (1x): 150 points
25%: Problem sets (4x): 25 points each
10%: Book Report (1x): 50 points

Q: Is there a curve?

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Syllabus: Grading

There are 500 points total. Your grade will be determined by:

40%: Final Exam (1x): 200 points
30%: Midterm Exam (1x): 150 points
25%: Problem sets (4x): 25 points each
10%: Book Report (1x): 50 points

Q: Is there a curve?

A: Maybe

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Syllabus: Grading

Following department policies, for 300 and 400 level classes roughly 65% of the class will receive A’s and B’s.

From the syllabus:

Your grade will be determined relative to your peers, so during the course, I will not be able to tell you what your exact letter grade is at any point in time, because it depends on everyone’s overall scores of the class.

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Syllabus: Exams

Midterm: Monday of week 03 (Nov 04)

Final: Thursday of week 04 (Dec 08)

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Syllabus: Exams

Midterm: Monday of week 03 (Nov 04)

Final: Thursday of week 04 (Dec 08)

Absolutely no makeups

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Syllabus: Exams

Midterm: Monday of week 03 (Nov 04)

Final: Thursday of week 04 (Dec 08)

Absolutely no makeups

Under extraordinary circumstances I will shift midterm weight to the final

Entirely by my discretion
Must contact me before the exam via email

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Syllabus: Exams

Midterm: Monday of week 03 (Nov 04)

Final: Thursday of week 04 (Dec 08)

Absolutely no makeups

Under extraordinary circumstances I will shift midterm weight to the final

Entirely by my discretion
Must contact me before the exam via email

Drop this course if you are unable to take the scheduled midterm

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Syllabus: Exams

Midterm: Monday of week 03 (Nov 04)

Final: Thursday of week 04 (Dec 08)

Absolutely no makeups

Under extraordinary circumstances I will shift midterm weight to the final

Entirely by my discretion
Must contact me before the exam via email

Drop this course if you are unable to take the scheduled midterm

Roughly 10% of points on the exam will be given for neatness + readability

I will take points off for poor: Image quality, handwriting

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Syllabus: Triumph of the City

Required reading Triumph of the City by Ed. Glaeser.

Problem sets: Several questions (gifts) from assigned reading

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Syllabus: Triumph of the City

Required reading Triumph of the City by Ed. Glaeser.

Problem sets: Several questions (gifts) from assigned reading
Exams: Several questions (gifts) from the book
- the questions will be pretty easy

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Syllabus: Triumph of the City

Required reading Triumph of the City by Ed. Glaeser.

Problem sets: Several questions (gifts) from assigned reading
Exams: Several questions (gifts) from the book
- the questions will be pretty easy
Book Report: Due Sunday following the final exam (August 15)
- Instructions and a rubric are posted on the course github + canvas
- Syllabus has the reading schedule. Feel free to read ahead

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Syllabus: Triumph of the City

Required reading Triumph of the City by Ed. Glaeser.

Problem sets: Several questions (gifts) from assigned reading
Exams: Several questions (gifts) from the book
- the questions will be pretty easy
Book Report: Due Sunday following the final exam (August 15)
- Instructions and a rubric are posted on the course github + canvas
- Syllabus has the reading schedule. Feel free to read ahead

This is a suuuuper interesting book and easy to read. Read every night.

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Syllabus: Homework

There will be 4 problem sets throughout the term:

Each one is worth 5% of your grade
You must submit a pdf document on Canvas*

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Syllabus: Homework

There will be 4 problem sets throughout the term:

Each one is worth 5% of your grade
You must submit a pdf document on Canvas*

No late homework assignments will be accepted

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Syllabus: Homework

There will be 4 problem sets throughout the term:

Each one is worth 5% of your grade
You must submit a pdf document on Canvas*

No late homework assignments will be accepted

Start them early, they will cover a lot of material

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Syllabus: Homework

There will be 4 problem sets throughout the term:

Each one is worth 5% of your grade
You must submit a pdf document on Canvas*

No late homework assignments will be accepted

Start them early, they will cover a lot of material

Geared to prepare you for the exams. Think of them as a study guide.

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Syllabus: Canvas + Github16 / 37

Syllabus: Canvas + Github

Canvas:

All the important materials will be posted to Canvas

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Syllabus: Canvas + Github

Canvas:

All the important materials will be posted to Canvas
- Homework submission
- Announcements

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Syllabus: Canvas + Github

Canvas:

All the important materials will be posted to Canvas
- Homework submission
- Announcements

Github:

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Syllabus: Canvas + Github

Canvas:

All the important materials will be posted to Canvas
- Homework submission
- Announcements

Github:

Light, public course page with links to all course material
Do not need an account. It is just easier for me

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What is economics?17 / 37

What is economics?

The Wealth of Nations by Adam Smith (1776)

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What is economics?

The Wealth of Nations by Adam Smith (1776)

Seminal work on economics, four volumes; as important to its field as:
- Newton’s Principia Mathematica
- Darwin’s Origin of Species

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What is economics?

The Wealth of Nations by Adam Smith (1776)

Seminal work on economics, four volumes; as important to its field as:
- Newton’s Principia Mathematica
- Darwin’s Origin of Species
"Wealth" ("weal")
- Money and other assets
- But also well-being, welfare

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What is economics?

The Wealth of Nations by Adam Smith (1776)

Seminal work on economics, four volumes; as important to its field as:
- Newton’s Principia Mathematica
- Darwin’s Origin of Species
"Wealth" ("weal")
- Money and other assets
- But also well-being, welfare
Archaic use of "wealth" make it seem like economics is merely the study of how to get rich

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What is economics?

In a nutshell:

Economics is the study of how people make allocation decisions to maximize their happiness when facing limit resources (budgets)

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What is economics?

In a nutshell:

Economics is the study of how people make allocation decisions to maximize their happiness when facing limit resources (budgets)

There is never enough resources to fulfill all human wants

Scarcity gives us constraints and we do the best we can s.t. constraints

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What is economics?

In a nutshell:

Economics is the study of how people make allocation decisions to maximize their happiness when facing limit resources (budgets)

There is never enough resources to fulfill all human wants

Scarcity gives us constraints and we do the best we can s.t. constraints

Not just money:

Time
Health

Land
Natural resources

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What is economics?

In a nutshell:

Economics is the study of how people make allocation decisions to maximize their happiness when facing limit resources (budgets)

There is never enough resources to fulfill all human wants

Scarcity gives us constraints and we do the best we can s.t. constraints

Not just money:

Time
Health

Land
Natural resources

Economics is very general; the market lens can be used across many topics

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Economics "wheelhouse"

Explain how actors actually behave; less about how they should behave

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Economics "wheelhouse"

Explain how actors actually behave; less about how they should behave

Normative statements: Matters of opinion; may never be resolved

Higher ed should be free

Positive statements: Matters of fact that can be resolved by data

Who should get federal grants? The best students or the most needy students?

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Economics "wheelhouse"

Explain how actors actually behave; less about how they should behave

Normative statements: Matters of opinion; may never be resolved

Higher ed should be free

Positive statements: Matters of fact that can be resolved by data

Who should get federal grants? The best students or the most needy students?

Figure out what the data say for evidence-based policy making

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Economics "wheelhouse"

Explain how actors actually behave; less about how they should behave

Normative statements: Matters of opinion; may never be resolved

Higher ed should be free

Positive statements: Matters of fact that can be resolved by data

Who should get federal grants? The best students or the most needy students?

Figure out what the data say for evidence-based policy making

Opportunity cost: What you have to give up by not putting a resource to its next-best alternative use

Economist use the word cost differently than the general public
- "Cost" is different than "price"

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Intro to Urban Economics21 / 37

Intro to Urban Economics

A mashup between geography and economics.

Economics: Study of how people and firms allocate scarce resources.

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Intro to Urban Economics

A mashup between geography and economics.

Economics: Study of how people and firms allocate scarce resources.

Geography: Studies effects of location and the environment

Hydrology, climate, resources, etc.

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Intro to Urban Economics

A mashup between geography and economics.

Economics: Study of how people and firms allocate scarce resources.

Geography: Studies effects of location and the environment

Hydrology, climate, resources, etc.

Economics + Geography : Study of how individuals and firms choose utility and profit maximizing locations, and consequences of these decisions

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Intro to Urban Economics

We will study how the distribution of people & firms across space impacts:

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Intro to Urban Economics

We will study how the distribution of people & firms across space impacts:

City growth 🏙
Crime 👮‍♀
The environment ♻️

Income growth & inequality 📈
Education 🏫
Employment + wages 🤑

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Intro to Urban Economics

We will study how the distribution of people & firms across space impacts:

City growth 🏙
Crime 👮‍♀
The environment ♻️

Income growth & inequality 📈
Education 🏫
Employment + wages 🤑

We will also examine the efficacy of various place - based policies

Minimum Wage
Rent Control

Land Use Restrictions
Sustainability

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Intro to Urban Economics

We will study how the distribution of people & firms across space impacts:

City growth 🏙
Crime 👮‍♀
The environment ♻️

Income growth & inequality 📈
Education 🏫
Employment + wages 🤑

We will also examine the efficacy of various place - based policies

Minimum Wage
Rent Control

Land Use Restrictions
Sustainability

What are the economic drivers behind urban development?

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This Course

This class has two fairly distinct halves:

Philosophy & Tools
- Why do cities exist? Why do they grow? Why do they decline?
- Fundamental tools of labor & urban econ (supply and demand)

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This Course

This class has two fairly distinct halves:

Philosophy & Tools
- Why do cities exist? Why do they grow? Why do they decline?
- Fundamental tools of labor & urban econ (supply and demand)
Application
- Rent Control & Minimum Wage
- Highways and urban transportation
- Income inequality and environmental issues

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What is a city?25 / 37

What is a city?

According to the Census Bureau...

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What is a city?

According to the Census Bureau...

Urban Area: a densely settled geographical area with:

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What is a city?

According to the Census Bureau...

Urban Area: a densely settled geographical area with:
- Minimum population of 2,500
- Minimum density of 500 people per square mile

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What is a city?

According to the Census Bureau...

Urban Area: a densely settled geographical area with:
- Minimum population of 2,500
- Minimum density of 500 people per square mile
Metropolitan Area: an urbanized area with at - least 50k population
Micropolitan Area: an urbanized area with at least 10k but not as many as 50k people
MSA: abbrev. for both metropolitan and micropolitan statistical area
Principal City: the largest municipality in an MSA

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What is a city?

According to the Census Bureau...

Urban Area: a densely settled geographical area with:
- Minimum population of 2,500
- Minimum density of 500 people per square mile
Metropolitan Area: an urbanized area with at - least 50k population
Micropolitan Area: an urbanized area with at least 10k but not as many as 50k people
MSA: abbrev. for both metropolitan and micropolitan statistical area
Principal City: the largest municipality in an MSA

City: Dense collection of people in specific geographic area

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Intro to Urban: Cities

The majority of the US population lives in cities^† and more people will continue to migrate into urban areas

†. 80 - ish percent, according to the Census Bureau

Questions:

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Intro to Urban: Cities

The majority of the US population lives in cities^† and more people will continue to migrate into urban areas

†. 80 - ish percent, according to the Census Bureau

Questions:

Do you like cities?
What are favorite city amenities?
Are cities at odds with the natural world?

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Intro to Urban: Cities

The majority of the US population lives in cities^† and more people will continue to migrate into urban areas

†. 80 - ish percent, according to the Census Bureau

Questions:

Do you like cities?
What are favorite city amenities?
Are cities at odds with the natural world?

Why do cities exist?

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Intro to Urban: Cities

The majority of the US population lives in cities^† and more people will continue to migrate into urban areas

†. 80 - ish percent, according to the Census Bureau

Questions:

Do you like cities?
What are favorite city amenities?
Are cities at odds with the natural world?

Why do cities exist?

Location matters

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Intro to Urban: Cities

The majority of the US population lives in cities^† and more people will continue to migrate into urban areas

†. 80 - ish percent, according to the Census Bureau

Questions:

Do you like cities?
What are favorite city amenities?
Are cities at odds with the natural world?

Why do cities exist?

Location matters

Let's look at some data

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Data

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Intro to Urban: Income & Population

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Intro to Urban: Rent and Population

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Intro to Urban: Economic Oppurtunity

Source: The Equality of Oppurtunity Project

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Intro to Urban: Carbon Emissions

Source: Colas & Morehouse (2019)

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Intro to Urban: Location...

Where you live has implications for

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Intro to Urban: Location...

Where you live has implications for

Your contribution to global carbon emissions
- Why does this vary across cities?

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Intro to Urban: Location...

Where you live has implications for

Your contribution to global carbon emissions
- Why does this vary across cities?
Your wage and rent
- Why does this vary across cities?

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Intro to Urban: Location...

Where you live has implications for

Your contribution to global carbon emissions
- Why does this vary across cities?
Your wage and rent
- Why does this vary across cities?
Your economic mobility
- Why does this vary across cities?

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Intro to Urban: Location...

Where you live has implications for

Your contribution to global carbon emissions
- Why does this vary across cities?
Your wage and rent
- Why does this vary across cities?
Your economic mobility
- Why does this vary across cities?

We will answer these questions as we progress through this course

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Our Toolkit

In this class we will make use of various mathematical models

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Our Toolkit

In this class we will make use of various mathematical models

What is a mathematical model?
- A model is a description of a system using .... math
- Useful to help explain and predict behavior

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Our Toolkit

In this class we will make use of various mathematical models

What is a mathematical model?
- A model is a description of a system using .... math
- Useful to help explain and predict behavior

The Canonical Example

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

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Our Toolkit

In this class we will make use of various mathematical models

What is a mathematical model?
- A model is a description of a system using .... math
- Useful to help explain and predict behavior

The Canonical Example

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

This model allows us to make predictions about prices and quantities (from the supply & demand side), and the equilibrium price and quantity

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Models

What are the pros of models?
- Allows for us to be very percise with our language
- Gives us the ability to predict the various aspects of the economy
- Can shed insight on mechanisms through which procceses interact

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Models

What are the pros of models?
- Allows for us to be very percise with our language
- Gives us the ability to predict the various aspects of the economy
- Can shed insight on mechanisms through which procceses interact
What are the cons of models?
- They require assumptions
- Claim: Almost all assumptions are wrong

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Models

What are the pros of models?
- Allows for us to be very percise with our language
- Gives us the ability to predict the various aspects of the economy
- Can shed insight on mechanisms through which procceses interact
What are the cons of models?
- They require assumptions
- Claim: Almost all assumptions are wrong
- Follow up: Not all wrong assumptions are useless

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Models

What are the pros of models?
- Allows for us to be very percise with our language
- Gives us the ability to predict the various aspects of the economy
- Can shed insight on mechanisms through which procceses interact
What are the cons of models?
- They require assumptions
- Claim: Almost all assumptions are wrong
- Follow up: Not all wrong assumptions are useless

The ability of the model to predict data and understand mechanisms determines how useful it is

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Models Part II

Did we make assumptions our supply/demand model? Discuss

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

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Models Part II

Did we make assumptions our supply/demand model? Discuss

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

Marginal values are diminishing and marginal costs are increasing ^†
- Generates downward demand and upward supply

†: Marginal = Adding one additional unit

Demand and Supply are linear
Demand and Supply are deterministic

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Models Part II

Did we make assumptions our supply/demand model? Discuss

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

Marginal values are diminishing and marginal costs are increasing ^†
- Generates downward demand and upward supply

†: Marginal = Adding one additional unit

Demand and Supply are linear
Demand and Supply are deterministic

Are these reasonable? Can your behavior be explained by a simple linear function?

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Models Part II

Did we make assumptions our supply/demand model? Discuss

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

Marginal values are diminishing and marginal costs are increasing ^†
- Generates downward demand and upward supply

†: Marginal = Adding one additional unit

Demand and Supply are linear
Demand and Supply are deterministic

Are these reasonable? Can your behavior be explained by a simple linear function?

Does a function even exist?

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Planning

Next Class:

EC201 Review
5 Axioms of Urban Economics

36 / 37

Planning

Next Class:

EC201 Review
5 Axioms of Urban Economics

Reading:

Get the book ASAP!!
Read the introduction

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Intro to Urban Economics

What is Urban Economics?
What is a city?
What is a model and why are they useful?

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Econ 330: Urban EconomicsLecture 01Andrew Dickinson07 October, 20211 / 37

Day One Two: Welcome!2 / 37

3 / 37

scale 80%

3 / 37

Introduction: About me

Name: Andrew Dickinson (please call me Andrew)

Office: PLC 417, Office Hours: TBD^†, Email: adickin3@uoregon.edu

†: I will hold office hours on Monday starting at 10 am. Not the official time yet

4 / 37

Introduction: About me

Name: Andrew Dickinson (please call me Andrew)

Office: PLC 417, Office Hours: TBD^†, Email: adickin3@uoregon.edu

†: I will hold office hours on Monday starting at 10 am. Not the official time yet

Third year PhD student researching:
- Applied micro topics related to environmental economics
- Causal inference, ML, and data science

4 / 37

Introduction: About me

Name: Andrew Dickinson (please call me Andrew)

Office: PLC 417, Office Hours: TBD^†, Email: adickin3@uoregon.edu

†: I will hold office hours on Monday starting at 10 am. Not the official time yet

Third year PhD student researching:
- Applied micro topics related to environmental economics
- Causal inference, ML, and data science

Not school:

From San Diego, CA
I enjoy spending time outside 🤙

4 / 37

Introduction: About me

Name: Andrew Dickinson (please call me Andrew)

Office: PLC 417, Office Hours: TBD^†, Email: adickin3@uoregon.edu

†: I will hold office hours on Monday starting at 10 am. Not the official time yet

Third year PhD student researching:
- Applied micro topics related to environmental economics
- Causal inference, ML, and data science

Not school:

From San Diego, CA
I enjoy spending time outside 🤙
- 🏃, 🏕, 🧗, 🏄, ⛷, 🛶, 🚵‍♂️, etc.

4 / 37

Introduction: About you

I hope that you:

5 / 37

Introduction: About you

I hope that you:

Are an eager student ready to learn about urban econ

5 / 37

Introduction: About you

I hope that you:

Are an eager student ready to learn about urban econ
Have passed EC-201 with at least some recollection of the material

5 / 37

Introduction: About you

I hope that you:

Are an eager student ready to learn about urban econ
Have passed EC-201 with at least some recollection of the material
Excited to be back in class in person

5 / 37

Introduction: About you

I hope that you:

Are an eager student ready to learn about urban econ
Have passed EC-201 with at least some recollection of the material
Excited to be back in class in person
Own plenty of masks for the remainder of the quarter

5 / 37

Schedule

Today:

(i). Syllabus + Course Policies

(ii). General Economics Discussion

(iii). Intro to Urban Economics

6 / 37

Schedule

Today:

(i). Syllabus + Course Policies

(ii). General Economics Discussion

(iii). Intro to Urban Economics

Upcoming:

EC201 review
Reading
PS01

6 / 37

Syllabus

All information is on the syllabus

Please read the syllabus and consult it first before sending emails!

7 / 37

Syllabus

All information is on the syllabus

Please read the syllabus and consult it first before sending emails!

I want to discuss the following:

7 / 37

Syllabus

All information is on the syllabus

Please read the syllabus and consult it first before sending emails!

I want to discuss the following:

(i). Course policies

(ii). Grades and grading

7 / 37

Syllabus: Zoom ground rules8 / 37

Syllabus: Zoom ground rules

(i). Turn your camera on

8 / 37

Syllabus: Zoom ground rules

(i). Turn your camera on

(ii). Mute mics when not talking

8 / 37

Syllabus: Zoom ground rules

(i). Turn your camera on

(ii). Mute mics when not talking

(iii). Do not share images or recordings

8 / 37

Syllabus: Zoom ground rules

(i). Turn your camera on

(ii). Mute mics when not talking

(iii). Do not share images or recordings

(iv). Feel free to interupt me or "raise hand"

(v). Keep the chat open and use it

(vi). If there is any technical difficulties tell me

8 / 37

Syllabus: Zoom ground rules

(i). Turn your camera on

(ii). Mute mics when not talking

(iii). Do not share images or recordings

(iv). Feel free to interupt me or "raise hand"

(v). Keep the chat open and use it

(vi). If there is any technical difficulties tell me

No passwords are turned on for now but we will see if we get bombed

8 / 37

Syllabus: Zoom ground rules

(i). Turn your camera on

(ii). Mute mics when not talking

(iii). Do not share images or recordings

(iv). Feel free to interupt me or "raise hand"

(v). Keep the chat open and use it

(vi). If there is any technical difficulties tell me

No passwords are turned on for now but we will see if we get bombed

I will try and start the meeting a little early + stay on for OH

8 / 37

Syllabus: Attendence9 / 37

Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

9 / 37

Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

The expectation is that you attend class every day

9 / 37

Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

The expectation is that you attend class every day

The midterm & final will be administered during class time

9 / 37

Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

The expectation is that you attend class every day

The midterm & final will be administered during class time

The quality of these lectures increase with participation and attendance

9 / 37

Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

The expectation is that you attend class every day

The midterm & final will be administered during class time

The quality of these lectures increase with participation and attendance

Obviously, given the circumstances there exists some flexibility

If you must isolate, I will provide you with additional course materials

9 / 37

Syllabus: Attendence

Attendance is mandatory, lectures will not be recorded

The expectation is that you attend class every day

The midterm & final will be administered during class time

The quality of these lectures increase with participation and attendance

Obviously, given the circumstances there exists some flexibility

If you must isolate, I will provide you with additional course materials

Complete slides will be posted to GitHub sometime after lecture^†

† More to talk about this next slide

9 / 37

Syllabus: Lectures

When I taught this class remotely, I made slides

10 / 37

Syllabus: Lectures

When I taught this class remotely, I made slides

However, I have a strong preference to use the board

Slower; keeps a good pace

10 / 37

Syllabus: Lectures

When I taught this class remotely, I made slides

However, I have a strong preference to use the board

Slower; keeps a good pace

I may not have time to adapt the slides into lecture notes

If I use slides, I will post them to a public Github Repository

They will not include any annotations (examples)

10 / 37

Syllabus: Lectures

When I taught this class remotely, I made slides

However, I have a strong preference to use the board

Slower; keeps a good pace

I may not have time to adapt the slides into lecture notes

If I use slides, I will post them to a public Github Repository

They will not include any annotations (examples)

Teach through examples

Walk through many "important examples" on the board 😉

10 / 37

Syllabus: Grading

There are 500 points total. Your grade will be determined by:

11 / 37

Syllabus: Grading

There are 500 points total. Your grade will be determined by:

40%: Final Exam (1x): 200 points
30%: Midterm Exam (1x): 150 points
25%: Problem sets (4x): 25 points each
10%: Book Report (1x): 50 points

11 / 37

Syllabus: Grading

There are 500 points total. Your grade will be determined by:

40%: Final Exam (1x): 200 points
30%: Midterm Exam (1x): 150 points
25%: Problem sets (4x): 25 points each
10%: Book Report (1x): 50 points

Q: Is there a curve?

11 / 37

Syllabus: Grading

There are 500 points total. Your grade will be determined by:

40%: Final Exam (1x): 200 points
30%: Midterm Exam (1x): 150 points
25%: Problem sets (4x): 25 points each
10%: Book Report (1x): 50 points

Q: Is there a curve?

A: Maybe

11 / 37

Syllabus: Grading

Following department policies, for 300 and 400 level classes roughly 65% of the class will receive A’s and B’s.

From the syllabus:

Your grade will be determined relative to your peers, so during the course, I will not be able to tell you what your exact letter grade is at any point in time, because it depends on everyone’s overall scores of the class.

12 / 37

Syllabus: Exams

Midterm: Monday of week 03 (Nov 04)

Final: Thursday of week 04 (Dec 08)

13 / 37

Syllabus: Exams

Midterm: Monday of week 03 (Nov 04)

Final: Thursday of week 04 (Dec 08)

Absolutely no makeups

13 / 37

Syllabus: Exams

Midterm: Monday of week 03 (Nov 04)

Final: Thursday of week 04 (Dec 08)

Absolutely no makeups

Under extraordinary circumstances I will shift midterm weight to the final

Entirely by my discretion
Must contact me before the exam via email

13 / 37

Syllabus: Exams

Midterm: Monday of week 03 (Nov 04)

Final: Thursday of week 04 (Dec 08)

Absolutely no makeups

Under extraordinary circumstances I will shift midterm weight to the final

Entirely by my discretion
Must contact me before the exam via email

Drop this course if you are unable to take the scheduled midterm

13 / 37

Syllabus: Exams

Midterm: Monday of week 03 (Nov 04)

Final: Thursday of week 04 (Dec 08)

Absolutely no makeups

Under extraordinary circumstances I will shift midterm weight to the final

Entirely by my discretion
Must contact me before the exam via email

Drop this course if you are unable to take the scheduled midterm

Roughly 10% of points on the exam will be given for neatness + readability

I will take points off for poor: Image quality, handwriting

13 / 37

Syllabus: Triumph of the City

Required reading Triumph of the City by Ed. Glaeser.

Problem sets: Several questions (gifts) from assigned reading

14 / 37

Syllabus: Triumph of the City

Required reading Triumph of the City by Ed. Glaeser.

Problem sets: Several questions (gifts) from assigned reading
Exams: Several questions (gifts) from the book
- the questions will be pretty easy

14 / 37

Syllabus: Triumph of the City

Required reading Triumph of the City by Ed. Glaeser.

Problem sets: Several questions (gifts) from assigned reading
Exams: Several questions (gifts) from the book
- the questions will be pretty easy
Book Report: Due Sunday following the final exam (August 15)
- Instructions and a rubric are posted on the course github + canvas
- Syllabus has the reading schedule. Feel free to read ahead

14 / 37

Syllabus: Triumph of the City

Required reading Triumph of the City by Ed. Glaeser.

Problem sets: Several questions (gifts) from assigned reading
Exams: Several questions (gifts) from the book
- the questions will be pretty easy
Book Report: Due Sunday following the final exam (August 15)
- Instructions and a rubric are posted on the course github + canvas
- Syllabus has the reading schedule. Feel free to read ahead

This is a suuuuper interesting book and easy to read. Read every night.

14 / 37

Syllabus: Homework

There will be 4 problem sets throughout the term:

Each one is worth 5% of your grade
You must submit a pdf document on Canvas*

15 / 37

Syllabus: Homework

There will be 4 problem sets throughout the term:

Each one is worth 5% of your grade
You must submit a pdf document on Canvas*

No late homework assignments will be accepted

15 / 37

Syllabus: Homework

There will be 4 problem sets throughout the term:

Each one is worth 5% of your grade
You must submit a pdf document on Canvas*

No late homework assignments will be accepted

Start them early, they will cover a lot of material

15 / 37

Syllabus: Homework

There will be 4 problem sets throughout the term:

Each one is worth 5% of your grade
You must submit a pdf document on Canvas*

No late homework assignments will be accepted

Start them early, they will cover a lot of material

Geared to prepare you for the exams. Think of them as a study guide.

15 / 37

Syllabus: Canvas + Github16 / 37

Syllabus: Canvas + Github

Canvas:

All the important materials will be posted to Canvas

16 / 37

Syllabus: Canvas + Github

Canvas:

All the important materials will be posted to Canvas
- Homework submission
- Announcements

16 / 37

Syllabus: Canvas + Github

Canvas:

All the important materials will be posted to Canvas
- Homework submission
- Announcements

Github:

16 / 37

Syllabus: Canvas + Github

Canvas:

All the important materials will be posted to Canvas
- Homework submission
- Announcements

Github:

Light, public course page with links to all course material
Do not need an account. It is just easier for me

16 / 37

What is economics?17 / 37

What is economics?

The Wealth of Nations by Adam Smith (1776)

18 / 37

What is economics?

The Wealth of Nations by Adam Smith (1776)

Seminal work on economics, four volumes; as important to its field as:
- Newton’s Principia Mathematica
- Darwin’s Origin of Species

18 / 37

What is economics?

The Wealth of Nations by Adam Smith (1776)

Seminal work on economics, four volumes; as important to its field as:
- Newton’s Principia Mathematica
- Darwin’s Origin of Species
"Wealth" ("weal")
- Money and other assets
- But also well-being, welfare

18 / 37

What is economics?

The Wealth of Nations by Adam Smith (1776)

Seminal work on economics, four volumes; as important to its field as:
- Newton’s Principia Mathematica
- Darwin’s Origin of Species
"Wealth" ("weal")
- Money and other assets
- But also well-being, welfare
Archaic use of "wealth" make it seem like economics is merely the study of how to get rich

18 / 37

What is economics?

In a nutshell:

Economics is the study of how people make allocation decisions to maximize their happiness when facing limit resources (budgets)

19 / 37

What is economics?

In a nutshell:

Economics is the study of how people make allocation decisions to maximize their happiness when facing limit resources (budgets)

There is never enough resources to fulfill all human wants

Scarcity gives us constraints and we do the best we can s.t. constraints

19 / 37

What is economics?

In a nutshell:

Economics is the study of how people make allocation decisions to maximize their happiness when facing limit resources (budgets)

There is never enough resources to fulfill all human wants

Scarcity gives us constraints and we do the best we can s.t. constraints

Not just money:

Time
Health

Land
Natural resources

19 / 37

What is economics?

In a nutshell:

Economics is the study of how people make allocation decisions to maximize their happiness when facing limit resources (budgets)

There is never enough resources to fulfill all human wants

Scarcity gives us constraints and we do the best we can s.t. constraints

Not just money:

Time
Health

Land
Natural resources

Economics is very general; the market lens can be used across many topics

19 / 37

Economics "wheelhouse"

Explain how actors actually behave; less about how they should behave

20 / 37

Economics "wheelhouse"

Explain how actors actually behave; less about how they should behave

Normative statements: Matters of opinion; may never be resolved

Higher ed should be free

Positive statements: Matters of fact that can be resolved by data

Who should get federal grants? The best students or the most needy students?

20 / 37

Economics "wheelhouse"

Explain how actors actually behave; less about how they should behave

Normative statements: Matters of opinion; may never be resolved

Higher ed should be free

Positive statements: Matters of fact that can be resolved by data

Who should get federal grants? The best students or the most needy students?

Figure out what the data say for evidence-based policy making

20 / 37

Economics "wheelhouse"

Explain how actors actually behave; less about how they should behave

Normative statements: Matters of opinion; may never be resolved

Higher ed should be free

Positive statements: Matters of fact that can be resolved by data

Who should get federal grants? The best students or the most needy students?

Figure out what the data say for evidence-based policy making

Opportunity cost: What you have to give up by not putting a resource to its next-best alternative use

Economist use the word cost differently than the general public
- "Cost" is different than "price"

20 / 37

Intro to Urban Economics21 / 37

Intro to Urban Economics

A mashup between geography and economics.

Economics: Study of how people and firms allocate scarce resources.

22 / 37

Intro to Urban Economics

A mashup between geography and economics.

Economics: Study of how people and firms allocate scarce resources.

Geography: Studies effects of location and the environment

Hydrology, climate, resources, etc.

22 / 37

Intro to Urban Economics

A mashup between geography and economics.

Economics: Study of how people and firms allocate scarce resources.

Geography: Studies effects of location and the environment

Hydrology, climate, resources, etc.

Economics + Geography : Study of how individuals and firms choose utility and profit maximizing locations, and consequences of these decisions

22 / 37

Intro to Urban Economics

We will study how the distribution of people & firms across space impacts:

23 / 37

Intro to Urban Economics

We will study how the distribution of people & firms across space impacts:

City growth 🏙
Crime 👮‍♀
The environment ♻️

Income growth & inequality 📈
Education 🏫
Employment + wages 🤑

23 / 37

Intro to Urban Economics

We will study how the distribution of people & firms across space impacts:

City growth 🏙
Crime 👮‍♀
The environment ♻️

Income growth & inequality 📈
Education 🏫
Employment + wages 🤑

We will also examine the efficacy of various place - based policies

Minimum Wage
Rent Control

Land Use Restrictions
Sustainability

23 / 37

Intro to Urban Economics

We will study how the distribution of people & firms across space impacts:

City growth 🏙
Crime 👮‍♀
The environment ♻️

Income growth & inequality 📈
Education 🏫
Employment + wages 🤑

We will also examine the efficacy of various place - based policies

Minimum Wage
Rent Control

Land Use Restrictions
Sustainability

What are the economic drivers behind urban development?

23 / 37

This Course

This class has two fairly distinct halves:

Philosophy & Tools
- Why do cities exist? Why do they grow? Why do they decline?
- Fundamental tools of labor & urban econ (supply and demand)

24 / 37

This Course

This class has two fairly distinct halves:

Philosophy & Tools
- Why do cities exist? Why do they grow? Why do they decline?
- Fundamental tools of labor & urban econ (supply and demand)
Application
- Rent Control & Minimum Wage
- Highways and urban transportation
- Income inequality and environmental issues

24 / 37

What is a city?25 / 37

What is a city?

According to the Census Bureau...

25 / 37

What is a city?

According to the Census Bureau...

Urban Area: a densely settled geographical area with:

25 / 37

What is a city?

According to the Census Bureau...

Urban Area: a densely settled geographical area with:
- Minimum population of 2,500
- Minimum density of 500 people per square mile

25 / 37

What is a city?

According to the Census Bureau...

Urban Area: a densely settled geographical area with:
- Minimum population of 2,500
- Minimum density of 500 people per square mile
Metropolitan Area: an urbanized area with at - least 50k population
Micropolitan Area: an urbanized area with at least 10k but not as many as 50k people
MSA: abbrev. for both metropolitan and micropolitan statistical area
Principal City: the largest municipality in an MSA

25 / 37

What is a city?

According to the Census Bureau...

Urban Area: a densely settled geographical area with:
- Minimum population of 2,500
- Minimum density of 500 people per square mile
Metropolitan Area: an urbanized area with at - least 50k population
Micropolitan Area: an urbanized area with at least 10k but not as many as 50k people
MSA: abbrev. for both metropolitan and micropolitan statistical area
Principal City: the largest municipality in an MSA

City: Dense collection of people in specific geographic area

25 / 37

Intro to Urban: Cities

The majority of the US population lives in cities^† and more people will continue to migrate into urban areas

†. 80 - ish percent, according to the Census Bureau

Questions:

26 / 37

Intro to Urban: Cities

The majority of the US population lives in cities^† and more people will continue to migrate into urban areas

†. 80 - ish percent, according to the Census Bureau

Questions:

Do you like cities?
What are favorite city amenities?
Are cities at odds with the natural world?

26 / 37

Intro to Urban: Cities

The majority of the US population lives in cities^† and more people will continue to migrate into urban areas

†. 80 - ish percent, according to the Census Bureau

Questions:

Do you like cities?
What are favorite city amenities?
Are cities at odds with the natural world?

Why do cities exist?

26 / 37

Intro to Urban: Cities

The majority of the US population lives in cities^† and more people will continue to migrate into urban areas

†. 80 - ish percent, according to the Census Bureau

Questions:

Do you like cities?
What are favorite city amenities?
Are cities at odds with the natural world?

Why do cities exist?

Location matters

26 / 37

Intro to Urban: Cities

The majority of the US population lives in cities^† and more people will continue to migrate into urban areas

†. 80 - ish percent, according to the Census Bureau

Questions:

Do you like cities?
What are favorite city amenities?
Are cities at odds with the natural world?

Why do cities exist?

Location matters

Let's look at some data

26 / 37

Data

27 / 37

Intro to Urban: Income & Population

28 / 37

Intro to Urban: Rent and Population

29 / 37

Intro to Urban: Economic Oppurtunity

Source: The Equality of Oppurtunity Project

30 / 37

Intro to Urban: Carbon Emissions

Source: Colas & Morehouse (2019)

31 / 37

Intro to Urban: Location...

Where you live has implications for

32 / 37

Intro to Urban: Location...

Where you live has implications for

Your contribution to global carbon emissions
- Why does this vary across cities?

32 / 37

Intro to Urban: Location...

Where you live has implications for

Your contribution to global carbon emissions
- Why does this vary across cities?
Your wage and rent
- Why does this vary across cities?

32 / 37

Intro to Urban: Location...

Where you live has implications for

Your contribution to global carbon emissions
- Why does this vary across cities?
Your wage and rent
- Why does this vary across cities?
Your economic mobility
- Why does this vary across cities?

32 / 37

Intro to Urban: Location...

Where you live has implications for

Your contribution to global carbon emissions
- Why does this vary across cities?
Your wage and rent
- Why does this vary across cities?
Your economic mobility
- Why does this vary across cities?

We will answer these questions as we progress through this course

32 / 37

Our Toolkit

In this class we will make use of various mathematical models

33 / 37

Our Toolkit

In this class we will make use of various mathematical models

What is a mathematical model?
- A model is a description of a system using .... math
- Useful to help explain and predict behavior

33 / 37

Our Toolkit

In this class we will make use of various mathematical models

What is a mathematical model?
- A model is a description of a system using .... math
- Useful to help explain and predict behavior

The Canonical Example

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

33 / 37

Our Toolkit

In this class we will make use of various mathematical models

What is a mathematical model?
- A model is a description of a system using .... math
- Useful to help explain and predict behavior

The Canonical Example

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

This model allows us to make predictions about prices and quantities (from the supply & demand side), and the equilibrium price and quantity

33 / 37

Models

What are the pros of models?
- Allows for us to be very percise with our language
- Gives us the ability to predict the various aspects of the economy
- Can shed insight on mechanisms through which procceses interact

34 / 37

Models

What are the pros of models?
- Allows for us to be very percise with our language
- Gives us the ability to predict the various aspects of the economy
- Can shed insight on mechanisms through which procceses interact
What are the cons of models?
- They require assumptions
- Claim: Almost all assumptions are wrong

34 / 37

Models

What are the pros of models?
- Allows for us to be very percise with our language
- Gives us the ability to predict the various aspects of the economy
- Can shed insight on mechanisms through which procceses interact
What are the cons of models?
- They require assumptions
- Claim: Almost all assumptions are wrong
- Follow up: Not all wrong assumptions are useless

34 / 37

Models

What are the pros of models?
- Allows for us to be very percise with our language
- Gives us the ability to predict the various aspects of the economy
- Can shed insight on mechanisms through which procceses interact
What are the cons of models?
- They require assumptions
- Claim: Almost all assumptions are wrong
- Follow up: Not all wrong assumptions are useless

The ability of the model to predict data and understand mechanisms determines how useful it is

34 / 37

Models Part II

Did we make assumptions our supply/demand model? Discuss

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

35 / 37

Models Part II

Did we make assumptions our supply/demand model? Discuss

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

Marginal values are diminishing and marginal costs are increasing ^†
- Generates downward demand and upward supply

†: Marginal = Adding one additional unit

Demand and Supply are linear
Demand and Supply are deterministic

35 / 37

Models Part II

Did we make assumptions our supply/demand model? Discuss

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

Marginal values are diminishing and marginal costs are increasing ^†
- Generates downward demand and upward supply

†: Marginal = Adding one additional unit

Demand and Supply are linear
Demand and Supply are deterministic

Are these reasonable? Can your behavior be explained by a simple linear function?

35 / 37

Models Part II

Did we make assumptions our supply/demand model? Discuss

$\begin{align*} \text{Supply}:\hspace{.1in} P(Q_s) &= 10 + 5*Q_s\\ \text{Demand}: \hspace{.1in}P(Q_d) &= 20 - 2*Q_d \end{align*}$

Marginal values are diminishing and marginal costs are increasing ^†
- Generates downward demand and upward supply

†: Marginal = Adding one additional unit

Demand and Supply are linear
Demand and Supply are deterministic

Are these reasonable? Can your behavior be explained by a simple linear function?

Does a function even exist?

35 / 37

Planning

Next Class:

EC201 Review
5 Axioms of Urban Economics

36 / 37

Planning

Next Class:

EC201 Review
5 Axioms of Urban Economics

Reading:

Get the book ASAP!!
Read the introduction

36 / 37

Admin

Schedule
Syllabus

Intro to Urban Economics

What is Urban Economics?
What is a city?
What is a model and why are they useful?

37 / 37

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