Iowa State University, Department of Economics

RURAL, URBAN, AND REGIONAL ECONOMICS

ECON 376, Fall 2003

Professor: M. KILKENNY 294-6259

office hours: T-W 4:00-5:30pm and by appointment

Department of Economics, 181 Heady Hall http://www.econ.iastate.edu/classes/econ376/kilkenny

Text: An Introduction to Regional Economics by Hoover and Giarratani (1984/1999) This is a WEB BOOK (so it is FREE). The web address is: http://www.rri.wvu.edu/WebBook/Giarratani/contents.htm ß NOTE: use the capital and lower case letters as shown here.

When/Where: M-W-F 12:10-1:00 pm, 119 East Hall

Prerequisites: Introductory Microeconomics (Econ 101)

Course Overview: We study the economic forces that determine the size and nature of places. How are forces that encourage development (lower transport costs, economies of scale) balanced by forces that dampen it (land scarcity, exclusivity)? We analyze business location choice and the location choices of people. Classic and neoclassic theories of location, modern industrial organization, and comparative advantage are used to explain the spatial distribution of economic activity, population, and trade. We learn how to classify areas, measure a region's economic specialties; calculate location quotients; delineate market areas; explain migration; and analyze contemporary policy issues. 

Homework: is assigned during lecture and posted on the class web page. (1) Read assigned material before class. Additional assigned readings will be made available on web page. (2) Most exercises are graded +,v, - , or 0 (no-show). No late homework is accepted. Answer keys are posted after the homework is due, on the class web page. Exams test your mastery of the homework problems. A student with a borderline score who turns in all homework will earn the higher grade for the course.

Term Project: Write a research paper that you present to the class. Choose a theme: a particular industry, demographic group, political issue, etc. Use and properly cite books and scholarly journal articles to review what is already known about your topic. All papers must pose and test a hypothesis, by statistically analyzing at least 30 observations. Use data (on the WWWeb). Apply the tools learned in class to pose and test your hypothesis, and to explain what the data shows. One of the following two perspectives is required:

1. Spatial Cross-Section: How does your theme vary across space (towns to metropolises, across Iowa's 99 counties, upstream-downstream, in the 50 states, around the world...)? Explain the observed concentration or dispersion. Example: theme: Do Midwesterners have mostly fast food restaurants? spatial range: 50 states; descriptive measures: business pattern data and location quotients; theory demonstrated: central place theory; findings: No: southern and western states have relatively more fast food restaurants. The student chose this theme to challenge a remark made by some other professor.

2. Time-Series: How has the location pattern of your theme changed over time? Example: theme: Milk Delivery; time period: one century; descriptive measures: transport modes used, costs per mile per gallon, and the average radius of milk market areas each decade since 1890; theory demonstrated: firm location and shopping-shipping goods market areas; findings: when delivery was by wagon (costly), market areas were very small, now they are large shipping market areas around which shopping market areas are very small. The student chose this theme because of his job as a milk truck driver.

Choose your topic in consultation with the professor before October 23. Detailed outlines are due Friday, October 24. Instructions will be on the class homepage. Everyone’s first drafts should be completed by Monday, December 1. Oral presentations take place during the last two weeks. Finished papers are absolutely due by Friday, December 19.

Exams: There will be two tests during the term, and a final exam. The tests cover the lectures, homework, and all reading material. The final exam is comprehensive. Old ECON 376 exams and practice exam problems will be posted on the class web page.

Grading: Sixty percent (60%) of the grade is based on the best two of the three exams. The worst exam counts for 10%. The project is worth 25%. Graded homework and miscellaneous earns 5%. Regular homework helps one earn a higher grade in borderline cases. There is no 'curve.' Students are graded on the material; not in competition with their classmates. Thus, it's possible for the whole class to earn A as long as everyone masters at least 93% of the material. The grading scale is:

< 54%	54-57	58-60	61-64	65-68	69-72	73-75	76-79	80-83	84-88	89-93	>93 %
F	D-	D	D +	C-	C	C+	B-	B	B+	A-	A