The Rise of Urban America II

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The Rise of Urban America II

• Public Policy Urban Affairs (PPUA) G6201
• WEEK 3
• The 21st Century City Urban Opportunities and
  Challenges in a Global Context
• Presentation of
• Barry Bluestone (Northeastern) Russ
  Williams (Wheaton College)

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Urban America in the 19th Century

• From Jeffersons Rural America to the City of
  Americas Industrial Revolution

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Post WW II
Industrialization
Pre-Civil War
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The Importance of Scale

• The Rise of the 19th 20th Century Cities

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• Scale Economies
• Large Manufacturing Facilities
• Services that require a critical population mass
  (e.g Department Stores, Museums)
• Major League Sports
• Public Transportation

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Large Scale Reduces Costs up to a point and
large scale means centralization
Figure 3.3 A Typical Long Run Average Cost
Curve
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Where does Production take Place?

• Resource Sites
• Production Sites
• Consumption Sites

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19th Century/20th Century

• Transportation costs were so high that location
  depended on
• minimizing transport costs

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Transportation Costs for a Resource-Oriented
Firm (also called a materials-oriented firm)
Michaelangelos Marble
A
Resource Site
Market
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Transportation Costs for a Market-Oriented
Firm The Downtown Department Store the Barber
Shop
B
Resource Site
Market
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The Weber Location Polygon for Two Resource Sites
and a Single Market
Russ
C

• Steel Production
• Taconite from Duluth
• Coal from West Virginia
• Limestone from Michigan

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Russ
HOW DOES LAND GET ITS VALUE?
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Urban Activities Where do they Take Place?
Russ

• Central Business District
• Wholesale-Light Manufacturing
• Low-class Residential
• Middle-class Residential
• High-class Residential
• Heavy Manufacturing
• Outlying Business District
• Residential Suburb
• Industrial Suburb
• Commuter Zone

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Russ
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Russ
The Bid Rent Curve and the effect of a change in
product price or a change in transportation
costs
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Russ
Bid Rent Curves for two different uses of land
and the resulting land distribution
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Russ
The Residential Paradox
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The 21st Century City
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Table 4.1 Percent of Metropolitan
Population Living in Central
Cities Year Percent in Central
Cities 1910 64.6 1920 66.0 1930 64
.6 1940 62.7 --------------------------------
--------------------------------------------------
-- 1950 58.6 1960 51.4 -----------------
--------------------------------------------------
----------------- 2000 37.4 Growth of
Suburbs Forces of Centralization up to 1920
(Centripetal Forces) Forces of Decentralization
after 1920 (Centrifugal Forces)
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The Case the Local Grocery Store Cost to
Customers of Reaching the Marketplace
Total Cost
A
Transportation Cost
Labor Cost
Site Cost
Miles from
Central City
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The Location Decision under Conditions of High
Site Costs and Rising Transportation Costs
Auto Production in the Post World War II Era
(Suburban Production)
Total Cost
B
Transportation Cost
Labor Cost
Site Cost

Miles from Central City
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The Location Decision under Conditions of Zero
Transportation Costs and Steeply Falling Labor
Costs The 21st Century Location Model
Total Cost
C
Site Cost
Labor Cost
Transportation Cost

Miles from Center City
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Manufacturing Still Dominates
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Moving toward the Post-Industrial World
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Barry
The New Postindustrial World
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The Polarization of Metro Areas
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Russ
Family and Neighborhood Income Profile, 100
Largest Metro Areas, 1970-2000 (Percentage
Shares)
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Next Week

• The Meaning of
• Urban Community
• Barry Shrage
• President,
• Combined Jewish Philanthropies
• James Carroll
• author, novelist, columnist
• for the Boston Globe

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The 21st Century City

• Q A / Discussion