FOURTH LECTURE: Urban Economics 2.
This class continues the exploration of economic dynamics with a few case studies. Two industrial hinterlands closely linked to cities, Silicon Valley and Route 128 (one animated by San Francisco, the other by Boston) are examined and their different dynamics contrasted. Then the ideas developed in a contemporary context are used to examine the rest of the millennium. Urbanist Jane Jacobs, for example, has explored the role of import-substitution dynamics in the rise of many of the cities which dominated the economic history of the West.: Venice, Amsterdam, London, New York. Her theories provide historical evidence that economies of agglomeration have played a fundamental role in the transformation of backward cities into dominant centers. Finally, the history of economies of scale is examined to show the role that military organizations (arsenals, armories) played in their rise and eventual domination of urban economics.
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