Introduction to Urban Economics

.title[
# Introduction to Urban Economics
]
.subtitle[
## EC 330, Set 01
]
.author[
### Andrew Dickinson
]
.date[
### Fall 2022
]

---

---
# Schedule

.bigger[.hi[Today]]
- Welcome, check in, survey, and syllabus
- Introduction: .it[What is (urban) economics?]
- Toolkit: .it[What is a model?]

---
#Introduction: About me

- Office: [PLC 523](https://map.uoregon.edu/7c6d0ffbd), Office Hours: .hi[TBD], Email: .hii[adickin3@uoregon.edu]

- .hi[Fourth year] PhD student researching:
  - Applied micro topics related to environmental economics
  - Causal inference, ML, and data science

- Grew up in San Diego, CA
  - I enjoy spending time outside and listening to good music 🤙
  
---
# Introduction: About you

.hi[(iv)]  Will read my [syllabus](https://www.youtube.com/watch?v=Tnlaokj1opA) .smallerer[(especially before sending me an email)]

---
class: inverse, middle

# Syllabus

---
# Syllabus: Attendance

Attendance is ".hi[mandatory]", though
- it does .hi-red[not] impact your grade
- records will .hi-red[not] be kept (though I have a good memory)
- lectures will .hi-red[not] be recorded

Attendance is an efficient use of your time
- Mixture of .hi-blue[slide decks] and .hi-green[in-class examples] on the board

.hi[Slide decks] will be posted to the course page .smaller[(.l[https://ajdickinson/EC330F22])] _sometime_ after lecture.hii[†]

.footnote[.hii[†] This is the only course material that will not be posted to the Canvas page. Examples will not be posted]

Exams will be administered during class time

---
# Syllabus: Grading

There are .hi-red[500] points total.  .hi[Your grade will be determined by:]

- 45%: Final Exam: .hi[225] pts

- 30%: Midterm Exam: .hi[150] pts

- 25%: Problem sets: 25 pts each, .hi[75] pts total

- 10%: Book Report: .hi[50] pts

---
# Syllabus: Grading

.hi-blue[Caveat]: Due to a curve, standing in this course will depend on your score relative to your peers--I may not be able to give you an accurate assessment of your grade

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.

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

---
# Syllabus: Exams

--

Under .hi[extraordinary circumstances] I will shift midterm weight to the final
- Entirely by my discretion
- Must contact me before the exam via email
    
--

---

#Syllabus: TotC

Required reading [Triumph of the City](https://www.amazon.com/Triumph-City-Greatest-Invention-Healthier/dp/0143120549) by Ed. Glaeser.

Easy reading that is .hi[suuuuper interesting], covering many of the same topics that we will in class; building your intuition

.hi[Book Report:] Due Sunday following the last day of class (Dec 4 @ 11:59p)
- Instructions and a rubric are posted on the course page + canvas soon
- Straight forward, easy points--so long as you read

.hi-red[Midterm] and .hi-red[final] will have questions connecting key topics in the books to topics in lecture
- If you read they should be easy; if you do not read they will be painful

---
#Syllabus: Problem sets

There will be .hi[4] problem sets throughout the term:
- Signal what to expect on the exams
- You must submit a .hi[.pdf] document on Canvas
- The lowest scored problem set is dropped
- No late homework assignments will be accepted
- If you scan is bad, or your handwriting illegible, you get .hi-red[nothing]

The problem sets are your .hi[best study tool] for the .hi-red[exams]. Do all of them!

- Start them .hi[early]
- Bring your work to class and ask for help
- Go to my office hour

---
# Syllabus: Canvas + course site

I use Canvas in conjunction to a simple course website hosted on GitHub

.bigger[[Course site:](https://github.com/ajdickinson/EC330F22)]
- Light, public page with links to all course material
- Do not need an account
- I use it out of convenience and other personal reasons
- .hi[ONLY] thing on the page that will not be on Canvas is the slide decks

---
class: inverse, middle, center
# What is economics?

---
# What is economics?

Seminal work on economics, four volumes; comparable to the works of:
- Newton’s _Principia Mathematica_
- Darwin’s _Origin of Species_
  
--

- Money and other assets
- But also well-being, welfare
  
--
  
.hi[Archaic] use of "wealth" 
- Economics is not merely the study of how to get rich
- Please don't ask me about the stock market

---
# What is economics?

In a nutshell:

.center[.hi[Economics is the study of how people make allocation decisions to maximize their happiness when facing limited resources (budgets)]]

There is never .hi[enough resources]; we call this .hi-red[scarcity]

.hi[Other examples of scarcity]
.pull-left[
  - Time
- Health]
.pull-right[
  - Land
- Natural resources]

---
class: inverse, center, middle
# Intro to Urban Economics

---
name:what_is_it
# Intro to Urban Economics

A mash-up between .hi[economics] and .hii[geography]

.hi[Economics:] Study of how people and firms allocate scarce resources.
- Individual utility, markets, trade, welfare

.hii[Geography:] Studies effects of location and the environment 
- Hydrology, climate, resources, etc.

.hi[Economics] + .hii[Geography]  : Study of how individuals and firms choose utility and profit maximizing locations, and consequences of these decisions

---
# Intro to Urban Economics

We will study how the .hi[distribution] of people & firms across space impacts:

.pull-left[
  - City growth 🏙
- Crime 👮‍♀
- The environment ♻️]
.pull-right[
  - Income growth & inequality  📈
- Education 🏫
- Employment + wages 🤑]
  
--

We will also examine the efficacy of various .hi[place - based policies]
.pull-left[
  - Minimum Wage
- Rent Control]
.pull-right[
  - Land Use Restrictions
- Sustainability]

---
# This Course

This class has two fairly distinct halves:

1. .hi[Philosophy & Tools]

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

2. .hi[Application]

- Rent Control & Minimum Wage
  
  - Highways and urban transportation
  
  - Income inequality and environmental issues

---
# What is a city?

- Minimum population of .hi[2,500]
  - Minimum density of .hi[500 people per square mile]

---
# Intro to Urban: Cities

The majority of the US population lives in cities.smallest[.hi-pink[†]] and more people will continue to migrate into urban areas

1. Do you like cities?

2. What are favorite city .hii[amenities]?

3. Are cities at odds with the natural world?

---
# Intro to Urban: Location...

Where you live has implications for

- Your contribution to .hi[global carbon emissions]

- _Why does this vary across cities?_

- Your .hi[wage] and .hi[rent]

- _Why does this vary across cities?_

- Your .hii[economic mobility]

- _Why does this vary across cities?_
  
--

---
name:what_is_model
# What is a model?

In this class we will make use of various .hi[mathematical models]

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

`\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 .hi[equilibrium] price and quantity

---
# What is a model?

What are the .hi-blue[pros] of models?
  - Allows for us to be very precise with our language
  - Gives us the ability to .hi[predict] the various aspects of the economy
  - Can shed insight on .hi[mechanisms] through which processes interact
  
--
  
What are the .hi-red[cons] of models?
- They require assumptions
- .hi[Almost] all assumptions are wrong
  
--

But not all wrong assumptions are useless
    
--

The ability of the model to .hi[predict data] and .hi-blue[understand mechanisms] determines how useful it is

---
# What is a model?

Did we make assumptions our supply/demand model? .hi.purple[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*}`

1. .hi[Marginal values] are diminishing and .hi[marginal costs] are increasing .hi[†]

- Generates downward demand and upward supply
  
.footnote[.hi[†]: Marginal = Adding one additional unit]
  
2. Demand and Supply are .hi[linear]

3. Demand and Supply are .hi[deterministic]

Are these reasonable? Can your behavior be explained by a simple .hi[linear function]?

---
class: inverse, middle
# Planning

- EC201 Review

- 5 Axioms of Urban Economics]

- Get the book ASAP!!

- Read the introduction]

---

#Table of Contents

###Intro to Urban Economics
.smallest[

1. [What is Urban Economics?](#what_is_it)

1. [What is a city?](#what_is_city)
  
1. [What is a model and why are they useful?](#what_is_model)

]
]

---
exclude: true

```r
p_load(pagedown)
pagedown::chrome_print(here::here("001-intro","lecture_one.html"))
```