This module is about cities, planning and markets. It is concerned with the way cities grow and take shape at the interface of markets and government policy. It is divided into two parts. The first part (spatial economic models) examines the dynamics of urban growth and urban changes – how spatial economic patterns emerge,evolve to shape citiesand progress through an urban life cycle. It explores the processes by which land and property are allocated to competing uses. It looks at the spatial order that emerges as individuals, households, firms and governments make location and investment choices. It does this by reviewing the principal spatial economic models of the 20^th century.

Having considered the complex dynamics of urban system using elements of economic theory, the second part of the module extends that theory to help students understand the purpose and limitations of planning (the economics of planning). It considers alternative strategies and tools for managing cities in pursuit of individual and collective prosperity.

Overall, the moduleinvestigates the complex relationships between space, planning and markets using contemporary economic and geographical perspectives including transaction costs and property rights. It considers the efficiency and distributional consequences of different market structures and considers the importance of space and location in determining market and planning outcomes.

The module uses lectures to introduce key analytical ideas and uses workshops, a self-directed project and short assignments to apply and explore these ideas via case studies, discussion and problem-solving.

1. Demonstrate an understanding of how cities are shaped by land and land-related transactions
2. Discuss the interconnected relationship between land value and land use
3. Explain the basic propositions of spatial economic models, and what they tell us about the way cities take shape with and without planning
4. Reflect on the implications of space/distance for market structure and outcomes
5. Discuss the relative strengths and weaknesses of markets and planning in shaping cities
6. Critically reflect on the use of planning models in directing planning interventions
7. Compare and contrast different planning interventions, in particular, approaches that involve regulation, tax, subsidy and direct investment.
8. Explain the idea that global spatial pattern emerges from local transactions and illustrate this with spatial analytical models and examples from observation

A series of lectures, workshops and computer practicals will introduce students to the theory and techniques of land economy and the planning theory concerning land use and land values. There is also an independent group project component which students are expected to work on during the course of the semester and apply their knowledge on planning and land use.

Subject-related skills

1. Use theoretical propositions to guide the collection of observational data relating to particular urban issues
2. Use observational data to explore, illustrate and test theoretical propositions
3. Read and understand intermediate level economic and geographical arguments about the city and explain them to others
4. Lead small group discussion of practical urban problems, applying theoretical ideas and interpreting observational evidence
5. Apply selected urban theory to analyse a live policy issue and defend this analysis in a presentation
6. Apply a gravity model to analyse spatial markets

Transferrable skills

1. In class discussion, share observations from individual assignments publicly and elaborate on theoretical significance
2. Participate in a group project, liaising between and within small groups
3. Interact with real policy makers/ practitioners in a live project
4. Use a virtual learning environment to access resources
5. Present group project to class using powerpoint and a poster
6. Working in a multi-disciplinary team to solve a real planning problem
7. Organising a contract to purchase design and visualisation input to a project

Syllabus content

1. Land Value & Bid-Rent (landuse, land values: Ricardo, von Thünen, Alonso)
2. Spatial Competition (emergence and complexity; Krugman’s critique on economic geography; Christaller, Lösch, Hotelling)
3. Land Use & Urban Hierarchy (land use models, rank-size rule, population density models, geodemography, urban hierarchy: Burgess, Hoyt, Zipf, Pareto)
4. Urban Life Cycle (urban sprawl, local migration, land-use change; Klaassen & Paelinck, Business/Innovation Cycles: Kondratieff, Kuznets, housing market/ property cycles: Friedman, Barras)
5. Spatial Interaction (gravity models & opportunity models, Reilly, Lowry, Huff’s model)
6. Externalities & Public Goods (cumulative causation, local external economies, externalities and public goods)
7. Spatial Analysis & Modelling for Urban Space 1 (theory and methods of spatial analysis and housing market)
8. Spatial Analysis & Modelling for Urban Space 2 (applications of spatial analysis, network analysis, spatial-temporal analysis) 

1.  Fujita M, Krugman P and Venables A.J. (1999) The Spatial Economy: Cities, Regions, and International Trade.London: MIT Press.
2. Harvey J (1996) Urban Land Economics.London: Macmillan.
3. Krugman P (1995) Development, Geography and Economic Theory.London: MIT Press.
4. McCanne P (2001) Urban and Regional Economics. Oxford: OxfordUniversityPress.
5. Webster CJ and Lai LCW (2002), Property rights, planning and markets: Managing spontaneous cities.Cheltenham: Edward Elgar.

 Specific reading given with each topic