Economics of Cities

Ed Glaeser is the Fred and Eleanor Glimp Professor of Economics at Harvard, where he also serves as Director of the Taubman Center for State and Local Government and the Rappaport Institute for Greater Boston. He studies the economics of cities, and has written scores of urban issues, including the growth of cities, segregation, crime, and housing markets. His most recent works include: Cities, Agglomeration and Spatial Equilibrium, Oxford: Oxford University Press (2008); Corruption and Reform: Lessons from Americas Economic History, (jointly edited with C. Goldin), Chicago, IL: University of Chicago Press (2006); and Fighting Poverty in the US and Europe: A World of Difference, (joint with A. Alesina), Oxford: Oxford University Press (2004). He received his Ph.D. from the University of Chicago in 1992 and has been at Harvard since then. The Mullen Lecture is sponsored by the UMBC Department of Economics.

[@Baddy67110]

Very interesting. Really nice to see someone passionate about economies of cities !

[@nthperson]

Every community has parts that have higher and lower land (i.e., location) values. The differences in location values are based on common characteristics: aggregate demand, population density, the quality of publicly-provided infrastructure and other amenities. The overall cost of living is driven by the cost of property, and the cost of property is driven by the cost of locations. Every parcel or tract of land has some potential annual rental value, this value generated by the above factors and locational desirability based on natural qualities. The public collection of this rental value via taxation ought to be recognized as the fairest and most economically-efficient source of public revenue. Some rental value is captured via property taxation but (with rare exceptions) far less than is warranted to prevent the hoarding of locations and speculation in locations rather than producing capital goods in order to generate revenue. As is understood and taught in any course on the economics of taxation, location rents should be the primary source of public revenue. Buildings should be exempted from taxation. The wages of individuals should be exempted from taxation. Commerce should be exempted from taxation. All such taxes impose dead weight losses on economic output. Deal with the taxation issues and the supply of affordable housing will increase to meet demand.
Edward J. Dodson, Director
School of Cooperative Individualism
www.cooperative-individualism.org

[@jumaogai]

very interesting!