Ch. 12 - Urban Economics Flashcards
Urban Economics are based on the relationship between which distinctive regions?
City —- Hinterland —- Nation —- Rest of the World
Trade occurs between which three levels?
Local - Institutions - Global
What are some characteristics of Canada post-industrial economy?
Increasing demand for knowledge, creativity, and formal qualifications in Canadian cities
Sectoral composition has shifted towards service-producing industries
Decrease in manufacturing base
Emphasis on innovation, knowledge-based economic development is troubling
Increasing divide between professional, managerial, technical, scientific workers and lower-wage, routinized service workers
Why does “location” affect the value of land?
Prices of houses and land vary over time and by geography
Value of land is determined by the conditions in the city but also what is happening globally
Social and economic relationships of complex urban systems shape the relative value of location (not simply by the price someone is willing able to pay)
What are the two value characteristics of location?
Accessibility
Proximity
Define “Proximity”:
The physical closeness to locations of importance
Define “Accessibility”:
The ease of getting from one place to another
What was Waldo Tobler’s “First Law of Geography”
“Everything is related to everything else, but near things are more related than distant things”
What does “Bid Rent” mean?
The amount of money that a particular parcel of land could expect to receive. Synonymous with land value
What is a “Prime Value Intersection”?
Point in the city with the greatest degree of access. The point where all other land values are determined.
Define “Access Costs”:
The costs associated with distance for a particular function
What are two big external factors affecting land value?
Globalization of financial markets is making it easier for foreign investors to buy real estate
Immigration increase has expanded the demand for land and housing; Recent immigrants tend to have higher permanent incomes, which increases their housing consumption
How many empty homes were counted in Vancouver in the latest census?
25,500 (More than 8% of the total housing stock)
What factors are contributing to the changing profile of Canadian cities?
Gentrification
Growth continuing in suburbs, which are permitted by transportation developments
How does the Structure of Land Ownership function in Canadian urban areas today?
Base rent is set by the least attractive land available that is to be used for housing (this would be farthest from the city
Higher income households tend to want larger lots of land, which leads them to periphery areas of cities
Lower-income households need to reduce commute costs. Sacrificing home size for distance/ travel time
Increasing incomes and the preference for larger incomes is continuing to promote the growth of suburban areas
