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Do Suburbs Need Cities?
Author(s) -
Voith Richard
Publication year - 1998
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/0022-4146.00102
Subject(s) - metropolitan area , sample (material) , estimation , instrumental variable , population growth , covariance , geography , population , econometrics , demographic economics , economics , statistics , demography , sociology , mathematics , chemistry , management , archaeology , chromatography
In this paper I examine the relationship between city and suburbangrowth over the last three decades for a sample of U.S. metropolitan areas. I develop a structuralempirical model relating city income growth to suburban growth in income, population, andhouse values. The model allows for bidirectional effects of cities on suburbs and suburbs oncities, as well as for unobserved factors affecting both city and suburbs. The simultaneous,latent‐variable model is identified using a combination of exclusion and covariance restrictions.Instrumental estimation results indicate that income growth in large cities enhances suburbangrowth; but income growth in small cities has little effect.