11.202 | Fall 2010 | Graduate

Planning Economics


[NS] = Nicholson, Walter, and Christopher Snyder. Intermediate Microeconomics and Its Application. 11th ed. South-Western College Publishers, 2009. ISBN: 9780324599107.

1 Public goods and externalities I: A local perspective

[NS] Chapter 16.

Tiebout, Charles. “A Pure Theory of Local Expenditures.” Journal of Political Economy (October 1956): 416-424.

Visualization Tools: Experiment with exercise 5.1.1

2 Public goods and externalities, cont. No readings

Guest lecture:

Estimating the cost of global warming, Michael Greenstone, 3M Professor of Environmental Economics, MIT Department of Economics

Congressional Budget Office. “How Policies to Reduce Greenhouse Gas Emissions Could Affect Employment.” May 5, 2010. (PDF)

Econ 101: Carbon Tax vs. Cap-and-Trade. Environmental Economics: Economists on Environmental and Natural Resources.

Slides: Michael Greenstone- “5 Facts about Climate Change: Cause for a Shift in Policy?” (PDF)

Slides: Michael Geenstone- “The Social Cost of Carbon, Cost-Benefit Analysis, and Rational Climate Policy.” (PDF - 1.1MB)

(The slides above were courteys of Michael Greenstone. Used with permission).

4 Basic investment theory

[NS] Chapter 14 including appendix

Visualization Tools: Experiment with exercise 6.1.1. and 6.1.2.


Guest lecture:

“Columbia A” housing finance case, Tod McGrath, Lecturer in Urban Studies and Planning, Center for Real Estate

McGrath, Tod. “Commonwealth Development (A).” MIT Center for Real Estate, 1999.
6 Location, economic development and the canonical urban problem

Krugman, Paul. “Space: The Final Frontier.” Journal of Economic Perspectives (Spring 1998): 161-174.

Gaspar, Jess, and Edward L. Glaesar. “Information Technology and the Future of Cities.” Journal of Urban Economics 43 (1998): 136-156. 

Baumol, William J. “The Macroeconomics of Unbalanced Growth.” American Economic Review 67, no. 3 (1967): 415-426.

7 Location, economic development, and the canonical urban problem, cont.

Glaeser, Edward L., and Matthew E. Kahn. “The Greenness of Cities: Carbon Dioxide Emissions and Urban Development.” NBER Working Paper No. 14238. August 2008.

Glaeser, Edward L., and Albert Saiz. “The Rise of the Skilled City.” NBER Working Paper No. 10191. (PDF)


Guest lecture:

New York City’s economic development strategy in the face of the recession, Michael Dardia, Deputy Director for Economic Development, City of New York Office of Management and Budget

No readings

Course Info

As Taught In
Fall 2010
Learning Resource Types
Problem Sets with Solutions
Exams with Solutions