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The structure of modern cities is characterized by the uneven spatial distribution of people and activities. Contrary to economic theory, it is neither evenly distributed nor entirely monocentric. The observed reality is the result of various feedbacks in the context of the interactions of attraction and repulsion. Heretofore, there is no agreement concerning the means to measuring the dimensions of these interactions, nor the framework for explaining them. We propose a simple model and an associated method for testing the interactions using residential land values. We claim that land values reflect the attractiveness of each location, including its observable and unobservable characteristics. We extract land values from prices of residences by applying a dedicated hedonic model to extensive residential real estate transaction data at a detailed spatial level. The resulting land values reflect the attractiveness of each urban location and are an ideal candidate to measure the degree of centrality or peripherality of each location. Moreover, assessment of land values over time indicates ongoing centralization and peripheralization processes. Using the urban structure of a small and highly urbanized country as a test case, this paper illustrates how the dynamics of the gap between central and peripheral urban areas can be assessed.

Urban Structure in Troubled Times: The Evolution of Principal and Secondary Core/Periphery Gaps through the Prism of Residential Land Values