Term
| Neo-classical microeconomic assumptions about markets |
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Definition
1. Fully informed, rational actors (producers, users)
2. Constant returns to scale (in production)
- an increase in outputs is proportional to an increase in inputs
3. Isotropic plane - featureless |
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Term
-Different kinds of agglomeration economies
-Differences?
-Which one is significant for new innovations?* |
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Definition
Localization economies - the benefits that arise from spatial concentration of actors in same industry (Chabanel)
Urbanization economies - the benefits that arise from a concentration of a diversity of industries (Montreal) |
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Term
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Definition
| Increase in outputs is less than increase in inputs |
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Term
| Heartland-hinterland theory |
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Definition
- Shift to manufacturing viewed as central to economic development
- Centres with high-order functions, eg: manufacturing, finance, administration, transport /logistics - are the industrial ‘heartland’ and exert influence over ‘hinterland’ |
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Term
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Definition
| Practical knowledge, acquired skills and learned abilities of that make an individuals potentially productive and enhances their value in the marketplace. |
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Term
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Definition
The ability of a party to produce at lower 'opportunity cost' than a competitor
- Determines which industry serves as an 'export' base
- Foundation of emergence of free trade between Britain and colonies |
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Term
| 3 assumptions that inform the 'monocentric city' perspective (kloosterman & Musterd) |
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Definition
- Concentration of employment in the core
4 key assumptions:
- Central export mode
- horse-drawn wagon
- hub-and spoke streetcar system
- agglomeration economies |
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Term
| As a supply-side strategy for influencing the location choices of firms, tax policy is used to address what kinds of costs? Do taxes influence location decisions? |
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Definition
| Tax policy is used to bring costs of business down for industries or firms. Not really effective. |
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Term
| economic base theory vs. growth pole theory |
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Definition
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Term
| how to differentiate ‘non-base’ and ‘base’ industries |
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Definition
Assumption technique - base = export (agriculture, mining, manufacturing), non-base = locally-oriented (services)
Location Quotient Technique - MATH :( |
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Term
| how to calculate a multiplier effect (know the formula!) & know what the number represents |
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Definition
Ratio of non-base to base activities.
Eg. ratio of 1 non-base job : 2 base jobs=0.5
OR
Base multiplier (ratio of total jobs to base jobs) - 1. |
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Term
| the key assumption of the early version of ‘location theory’ |
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Definition
Centered on transport costs
(raw material -> manufacturer; finished goods -> market)
Based on assumption that only exports can trigger economic growth and increases in non-basic activity. ‘Multipliers’ assumed constant. |
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Term
| according to Fainstein and Harloe, first division ‘global cities’ (i.e. London, New York and Tokyo) are distinguished by a concentration of which key economic activity? |
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Definition
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Term
| in a polycentric city, does the central city still matter? Why or why not? (refer to Kloosterman and Musterd article) |
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Definition
| yes, especially in the case of innovative activities based on the exchange of richly layered information demanding a high frequency of face-to-face contacts. |
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Term
| what are two reasons that staple-centered development failed in parts of Canada? |
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Definition
1. Export demand is dictated by external volatile markets (boom/bust cycle)
2. Profits go to foreign countries, creates a vicious cycle of dependancy. |
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Term
| according to Eisinger, which two locational factors are most significant for manufacturing firms? |
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Definition
| Market access and labour climate |
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Term
| according to Rutland & Hagan (2007), the vertical disintegration of the traditionally large integrated firm (or ‘corporation’) has led to a greater dependence on what kind of firms? |
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Definition
| Firms specialize and have greater flexibility, with 'routine' functions (lower-end manufacturing) being shipped overseas, and non-routine functions (high-tech services, cultural industries) stay local. |
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Term
| growth pole strategy – the 3 challenges to implementing them |
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Definition
Requires time
Requires money
Selecting certain areas for investment not politically expedient |
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Term
| according to North, what happens to regional differences over the long-term? |
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Definition
| economic convergence between regions |
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Term
| ‘Localization economies’ and list three benefits associated with such economies. |
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Definition
Benefits that arise from spatial concentration of actors in the same industry
-Suppliers located next to manufacturer
-labour pooling
-knowledge spillovers |
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Term
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Definition
| Banks categorizing neighbourhoods as unsuitable for mortgages/insurance (usually non-white) |
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Term
| Tacit knowledge – know the definition & what facilitates the exchange of this kind of knowledge (see Rutland & Hagan article and class lecture) |
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Definition
| Not easily communicated, spatial concentration helps |
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Term
| Industrial revenue bond (IRB) |
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Definition
| Loan to buy land; facility/equipment, financed by investor, issued by city |
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Term
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Definition
extension of market principles
to all spheres of life, incl. provision of public
goods
- more risk-taking & profit-oriented |
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Term
| Fiscal zoning – be able to define and provide an example |
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Definition
excludes households that would impose a fiscal burden on local government
ex. Minimum-lot zoning: establish a minimum lot size for residential development higher house value & tax liability |
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Term
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Definition
| low-density development which separates where people work and live, requiring car travel between zones |
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Term
| Staple (refer to North article) |
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Definition
main commodity produced by a region
Examples: cod/timber in the Atlantic; fur in Central Canada |
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Term
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Definition
| where many of low-end service sector jobs are located |
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Term
| According to Eisinger, supply-side strategies can lead to ‘zero-sum’ effects, ‘minus-sum’ effects and ‘short-lived’ effects. Explain each of these effects.. |
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Definition
zero-sum effects (intra-regional relocation)
minus-sum effects (foregone tax revenues)
short-lived effects (neighbouring town can match them) |
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Term
| According to Filion, what distinguishes the heartland from the hinterland? |
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Definition
| population density, and diversity of economic base |
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Term
| According to Hirschman, linkages are a key mechanism by which investments in the local economy can lead to a diversification of the economy. Describe three such linkages (do not just list them). |
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Definition
1) Backward: inputs to export industry are sourced locally( eg. mining in town)
2) Forward: outputs of export industry serve as inputs to other local industries (products used by other local town industries)
3) Final Demand: local consumption needs are served by local industries (prod. eventually used by local pop) |
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Term
| Short Essay - According to the Hannigan article, what does a shift from urban government to entrepreneurial governance imply for the role of government? In specific, how has that role changed? ‘Who’ is now governing? And why is this governance approach viewed as ‘undemocratic’? |
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Definition
| serves the bottom line, not people? |
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Term
| Short Essay - According to the growth pole strategy, what kind of industry is needed to promote economic growth? According to Parr, there are two rationales for the growth pole strategy. What are the rationales? [Do not just list them, but explain them]. In Canada, where were most growth pole strategies implemented in the 1970s, and why? What were the limits to this strategy as a regional policy? |
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Definition
Propulsive industry
Concentration of infrastructure and economy
Eastern canada |
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