City Economics by Brendan O'Flaherty

By Brendan O'Flaherty

I frequently hate economics, yet this booklet has particularly awarded the data that's effortless to appreciate, and straightforward to include into determination making.

I strongly suggest it!

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Sample text

But most trips in urban areas in the United States are made by car, and so this chapter and the next will focus on cars. S development has overemphasized automobile travel and that developing countries would be well advised to encourage more use of mass transit. This chapter begins with an analysis of driving and public policy in the unrealistic case in which the driver bears all costs. This section also provides a review of some important microeconomic concepts that we will use extensively throughout the book.

The cost of transportation is one of the factors that limit how much cities can grow and how much increasing returns to scale can be realized. At the same time, if transportation had no cost, cities wouldn’t exist. It would be just as easy to travel between any two places as between any two other places, and so proximity would have no meaning: Moscow would be just as close to the White House as the Capitol is. If proximity has no meaning, it has no value, and if proximity has no value, neither do cities.

Mrs. Rosenthal was a custom dressmaker in New York. She didn’t like the way her dresses hung on her customers. To improve the fit, she started experimenting with underclothing, and the result was the brassiere. Customers liked her brassieres, and she started giving out custom-made brassieres with her dresses. After working like this for a while, she found a partner, raised some money, started the Maidenform company, and went into the brassiere business full-time. She left the dressmaking business.

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