short answers 1 mark for each questions urban economics
6. How are transfer payments typically treated in a cost benefit analysis? 7. You are conducting a cost benefit analysis of an option to speed up rail services in Auckland. An elected official approaches you and notes that we have already made a series of significant investments in public transport and that we can't stop now. How might you treat these investments in a cost benefit analysis? What is the name typically given to these investments in a costs benefit analysis? 8. You are reviewing a cost benefit analysis of a new roading project in Auckland. You notice that the authors have identified and measured two sources of benefits for the project: travel time savings for users and land value uplift for houses that benefit from the new infrastructure. Why might you be concerned about including both of these effects in a cost benefit analysis? 9. Glaeser (2008) states Individual choice over locations produces the single most important concept in regional and urban economics: the spatial equilibrium ... Briefly define a spatial general equilibrium in the context of the model developed by Roback (1981), as discussed in lectures. Discuss how rents and wages capture the attractiveness of locations for firms and households. 10. In the basic formulation of Robacks model, price levels are assumed to adjust instantaneously and perfectly to shocks (in, say, wages, rents, or amenities). In this way, prices maintain spatial equilibrium between locations. What does this set-up imply for migration? Explain. 6. How are transfer payments typically treated in a cost benefit analysis? 7. You are conducting a cost benefit analysis of an option to speed up rail services in Auckland. An elected official approaches you and notes that we have already made a series of significant investments in public transport and that we can't stop now. How might you treat these investments in a cost benefit analysis? What is the name typically given to these investments in a costs benefit analysis? 8. You are reviewing a cost benefit analysis of a new roading project in Auckland. You notice that the authors have identified and measured two sources of benefits for the project: travel time savings for users and land value uplift for houses that benefit from the new infrastructure. Why might you be concerned about including both of these effects in a cost benefit analysis? 9. Glaeser (2008) states Individual choice over locations produces the single most important concept in regional and urban economics: the spatial equilibrium ... Briefly define a spatial general equilibrium in the context of the model developed by Roback (1981), as discussed in lectures. Discuss how rents and wages capture the attractiveness of locations for firms and households. 10. In the basic formulation of Robacks model, price levels are assumed to adjust instantaneously and perfectly to shocks (in, say, wages, rents, or amenities). In this way, prices maintain spatial equilibrium between locations. What does this set-up imply for migration? Explain
