Prof. Scott Campbell • College of Architecture and Urban Planning • University Of Michigan • sdcamp@umich.edu • office:  2225C A&AB • (734) 763-2077 • Office Hours sign up page • class meets M, W   11:30 - 1:00 (2213 A&AB)

LINKS: Assignments Course Overview and Readings Related Web Sites List of Related Readings Terms & Concepts Major ED Questions general research links

Go to syllabus month: Sept • Oct • Nov • Dec

last updated:  Tuesday, October 27, 2009 5:05 PM

overview of the course, readings, assignments

introduction to the field of economic development within the context of urban and regional planning

Monday: background and concepts

Wednesday [REVISED]: Each student should write a concise (1-2 page) position paper that argues either one side of the case or the other. ** Students with last names starting with letters A - H: argue for the City of New London position. Letters I - Z: argue for the Kelo et al. (anti-eminent domain) position. In particular, consider two aspects of the case: (a) is economic development a legitimate function / purpose of government? (b) Does local economic development constitute a valid "public use?" [i.e., does economic development justify taking property?]

Each student should bring their short paper to class on Wednesday. We will begin by dividing the class into the two groups. Each group will discuss the various arguments in support of their position, select the strongest arguments, devise an argumentative strategy, and select several group representatives. We will then come back together and have each group present their argument to the class. Each group will then be able to offer rebuttals. Finally, we will conclude with a discussion of each position, and compare the class's arguments to those made by the Court, APA, and others. I will collect the position papers at the end of class.

Ferdinand P. Schoettle, "What Public Finance Do State Constitutions Allow?" in White, Bingham, Hill (2003)
Supreme Court ruling, 6/23/05
American Planning Association: guide to eminent domain • amicus brief •  Redevelopment Policy Guide
opponents of eminent domain include: Castle Coalition • Institute for Justice
background: wikipedia.org
a google search for [kelo "eminent domain"] will also yield an abundance of readings, both reasoned and bombastic.

see also the related case of Poletown:
Jenny Nolan, Auto plant vs. neighborhood: The Poletown battle, Detroit News
John Gallagher, 2004. Poletown seizures are ruled unlawful: State Supreme Court restricts government rights to take land. Detroit Free Press.

basic tools (excel)

export base example (excel)

North, Douglass C. 1955. Location Theory and Regional Economic Growth. Journal of Political Economy 63 (3). [eReserves]
Tiebout, C.M. 1956. Exports and Regional Economic Growth. Journal of Political Economy 64 (2). [eReserves]
Tiebout, C. M. 1956. A pure theory of local public expenditures. Journal of Political Economy 64 (3):416–424. [eReserves]
Chinitz, Benjamin. 1961. Contrasts in Agglomeration: New York and Pittsburgh. Journal of the American Economic Association (May):279-289. [eReserves]

see also:
William Alonso "Location Theory" in J. Friedmann and W. Alonso (eds.) Regional Policy: Readings in Theory and Applications (Cambridge: MIT Press, 1995) Ch. 2. [eReserves]
Paul Krugman “Localization” Chapter 2 , Geography and Trade (Cambridge: MIT, 1991). [eReserves]
Glaeser, Edward L. 1996. Why Economists Still Like Cities. City Journal 6 (2). [eReserves]
"Money Drain in your Community" (US Dept. of Agriculture, Office of Community Development)
Richardson, Harry W. "Economics and Urban Problems," in Urban Economics. Baltimore: Penguin Books,, 1971, pp. 11-14. [eReserves for UP573]
Heilbrun, James. "The Economics of Urbanization," in Urban Economics and Public Policy. 3rd edition, New York: St. Martin's Press 1987, pp. 7-20. [eReserves for UP573]

Michigan: Renaissance Zones (Not to be confused with Smart Zones)
Detroit's Renaissance Zone

Federal Level
HUD: Community Planning and Development > map

Larry Ledebur and Douglas P. Woodward, "Adding a Stick to the Carrot: Location Incentives with Clawbacks, Recisions, and Recalibrations," in White, Bingham, Hill (2003)
Michael T. Peddle and Roger K. Dahlstrom, "Development Exactions," in White, Bingham, Hill (2003)
Alan Peters and Peter Fisher, "Enterprise Zone Incentives: How Effective Are They?" in White, Bingham, Hill (2003)
Boarnet, Marion G., “Enterprise Zones and Job Creation: Linking Evaluations and Practice.” Economic Development Quarterly, Aug2001, Vol. 15 Issue 3, p242. [eReserves]

see also:
The Annie E.Casey Foundation. 2002. Voices from the Empowerment Zones: Insights about launching large-scale community revitalization initiatives. Baltimore, Maryland. pdf file.
Beverly McLean and James Bates, "Financing Neighborhood Businesses: Collaborative Strategies," in White, Bingham, Hill (2003)
Rod Hissong, "The Efficacy of Local Economic Development Incentives," in White, Bingham, Hill (2003)
Kelly Robinson, "Revolving Loan Funds," in White, Bingham, Hill (2003)

How do we determine whether the program actually made a difference (that is, led to the desired effect and had minimal side effects)?

(Plus: basic tools for cost-benefit analysis)

Why is economic development evaluation often so difficult (and political)?

Laura A. Reese and David Fasenfest, What Works Best? Values and the Evaluation of Local Economic Development Policy, in Blair and Reese, 1998. [eReserves]
Isserman, Andrew, and Terance Rephann. 1995. The Economic Effects of the Appalachian Regional Commission: an Empirical Assessment of 26 Years of Regional Development Planning. Journal of the American Planning Association 61 (3):345-364. [eReserves]
Felsenstein, Daniel, and Joseph  Persky. 1999. When Is a Cost Really a Benefit? Local Welfare Effects and Employment Creation in the Evaluation of Economic Development Programs. Economic Development Quarterly 13 (1):46-54. [eReserves]

see also:
Alan Peters and Peter Fisher, 2004. "The Failures of Economic Development Incentives" Journal of the American Planning Association, Vol. 70 (1): Winter 2004. pdf file
the entire issue: Economic Development Quarterly Vol. 13, No. 1, 1999 (special issue: "Critical Perspectives on Local Development Policy Evaluation")
Economic Impact Analysis (a comprehensive set of readings) [updated link]

What are the competing explanations for the concentration of urban poverty and its remedies? Gini coefficient excel file

links to poverty pages

Porter, Michael E. 1997. New Strategies for Inner-City Economic Development. Economic Development Quarterly 11 (1). [eReserves]
Harrison, Bennett, and Amy K. Glasmeier. 1997. Why business alone won't redevelop the inner city: A friendly critique of Michael Porter's approach to urban revitalization. Economic Development Quarterly 11 (1):28-38. [eReserves]
Michael B. Teitz and Karen Chapple “The Causes of Inner-City Poverty: Eight Hypotheses in Search of Reality” Cityscape Vol 3, No 3 (1998)

see also:
The Institute for Strategy and Competitiveness (Harvard; led by Michael Porter)
Paul A. Jargowsky, Stunning Progress, Hidden Problems: The Dramatic Decline of Concentrated Poverty in the 1990s. (Brookings Institute), May 2003.

Donald Schunk and Douglas Woodward, "Incentives and Economic Development: The Case of BMW in South Carolina," in White, Bingham, Hill (2003)

A few web sites for further info (optional):

take a virtual tour of the factory:
http://www.bmwusfactory.com/build/

its community impacts:
http://www.bmwusfactory.com/community/impact.asp

The Economic Impact of BMW (U. of South Carolina Business School)
http://research.moore.sc.edu/Research/studies/BMW/bmwmay.pdf
(note: this study overlaps with the course reading by Schunk and Woodward)

Bill King, Chief Editor, and Rachael Hedgcoth. 2003. 2003 TOP 50 U.S. CITIES FOR EUROPEAN EXPANSION: Spartanburg, S.C., Ranks No. 1: Survey of European manufacturing capital investment in the United States over the past two years reflects heavy investment by automotive industry. Expansion Management Online. June 1. new

Rachael Hedgcoth. 1998. "South Carolina Is Creating Jobs in Record Numbers: BMW, Corning are among the companies investing in the Palmetto State." Expansion Management Online. March 28.

Jay Hancock,1999. "S.C. pays dearly for added jobs: South Carolina's economy was supposed to improve, but taxes exploded while services crumbled," Baltimore Sun, Originally published on Oct 12 1999.

Low prices and low wages: supercenters as the savior of local economies and/or the vanguard of suburban sprawl and wage cutting?

Simon Head, 2004. Inside the Leviathan. The New York Review of Books. Vol. 51 (20): Dec. 16
LA Times 2004 articles on Wal-Mart

[more readings to be added]

see also:
Wal-Mart home page • stores • community impact
PBS Frontline: "Is Wal-Mart Good for America?" (detailed on-line resources; and watch the movie on-line).

UCLA examines ‘Wal-Martization’ Urban planning course studies supercenter’s costly impact on regional, global economies
Bay Area Economic Forum, "Supercenters and the Transformation of the Bay Area Grocery Industry: Issues, Trends, and Impacts," (January 2004). pdf

Newrules.org: The Hometown Advantage: Reviving Locally Owned Businesses and their "Big Box Economic Impact Studies"

theboxtank [a weblog about big-box urbanism]

The purpose of this session is (a) to offer initial feedback on the first round handbook drafts and (b) to select second round topics. We will first discuss these drafts in small groups (your editing groups), and then collectively discuss writing and research strategies as a class. Please be sure to read the entries from your editing group by today and come with comments.

Also (time permitting): in-class simulation exercise.

Saxenian, AnnaLee. 1996. Regional Advantage : Culture and Competition in Silicon Valley and Route 128. Cambridge, MA: Harvard University Press.

Doeringer and Terkla, "Business Strategy and Cross-Industry Clusters," [eReserves]

E. Bergman and E. Feser. Industrial and Regional Clusters, chapters 3-4

see also:
Are High Tech Clusters Now Vital for Economic Development?:  An "econ dev" Roundtable Discussion
Saxenian, AnnaLee. 1994. "The Limits of Autarky: Regional Networks and Industrial Adaptation in Silicon Valley and Route 128." (Prepared for HUD Roundtable on Regionalism sponsored by the Social Science Research Council, Dec 8-9, 1994.) html
David E. Arnstein, Venture Capital, in White, Bingham, Hill (2003)Business Angels, Adam Bock , in White, Bingham, Hill (2003)

MEDC (2003): Ready for the Next Leap Forward: A Competitive Assessment and Strategic Plan to Develop Michigan’s Life Sciences Industry (pdf file) [see, in particular, their analysis of the sector's economic development and employment potential, their analysis of clustering, and the competitive potential for Michigan].

Mary Anne George, 2001: "A turn toward high tech $1-billion initiative to help state lead way in life science research," Detroit Free Press (online edition), April 11.

Sibyl Shalo. "Picking a place to grow," Pharmaceutical Executive. Jun 2003. Vol. 23, Iss. 6; p. 54. [access via UM Library Proquest or here.]

for background on the industry, please see:
Lynne G Zucker; Michael R Darby; Marilynn B Brewer, Intellectual human capital and the birth of U.S. biotechnology enterprises. The American Economic Review; Mar 1998; 88, 1; [access via UM Library Proquest or here.]

Review these sites and programs:
UM Life Sciences Initiative
MEDC: Life Sciences Corridor (note how they market the amenities of the Ann Arbor Region)
MSU: Life Sciences Corridor

compare to other programs: San Diego - Manitoba - Pennsylvania - SF Bay Area

examples from current and previous years

Ward, Stephen V. 1998.  Selling Places : The Marketing and Promotion of Towns and Cities, 1850-2000.   Routledge. [Wednesday: Chs. 1-6; Monday: Chs. 7-11]

see also:
Bob Jessop and Ngai-Ling Sum,'An Entrepreneurial City in Action: Hong Kong's Emerging Strategies in and for (Inter-)Urban Competition' (draft, 2000) link fixed
Bob Jessop, Globalization, Entrepreneurial Cities, and the Social Economy broken link (to be fixed)
Cheshire, Paul.  1999.  Cities in Competition: Articulating the Gains from Integration. Urban Studies, May99, Vol. 36 Issue 5/6,  p843, 22p broken link (to be fixed)
Segedy, J. A., How Important Is "Quality of Life" in Location Decisions and Local Economic Development? in Bingham and Mier, 1997.

Judd, Dennis. "Promoting Tourism in US Cities." Tourism Management, Vol. 16, No. 3, 1995, pp. 175-187 [eReserves]

Regan Stewart, "Sport Cities: How Sports Can Make a City a Better Place for Your Business," Business Facilities (Feb. 2005).

Nelson, Arthur C. "Prosperity or Blight? A Question of Major League Stadia Locations." Economic Development Quarterly, Vol. 15, No. 3, August 2001, pp. 255-265. [eReserves]

Altshuler, Alan A., and David Luberoff "Mega-Projects and Urban Theory," in Mega-Projects: The Changing Politics of Urban Public Investment. Washington, D.C.; Cambridge, MA Brookings Institution Press; Lincoln Institute of Land Policy, 2003, pp. 45-75. [eReserves]

see also:
link to on-line readings (see both readings on sports stadiums and on the Olympics)

How can we reconcile economic development priorities with environmental protection? Is the confluence sustainable development? How does SD express itself in land use, economic policy, labor policy, and building technology?

Marcuse, Peter. 1998. Sustainability is not enough. Planners Network May (129):1-10. link updated
Steven F. Hayward. 2003. "A sensible environmentalism" Public Interest,  Spring,
Power, Thomas Michael. "Thinking About the Local Economy," in Lost Landscapes and Failed Economies: The Search for a Value of Place. Washington, D.C., Covelo, CA Island Press, 1996, pp. 7-28. [eReserves]

see also:
Campbell, Scott. 1996. "Green Cities, Growing Cities?  Ecology, Economics and the Contradictions of Urban Planning," Journal of the American Planning Association (Summer).  [eReserves]
Campbell, Scott., "Skeptics and True Believers: Has the Ideology of Sustainable Development Transformed Planning Theory?" URRC Working Paper 03-9. [link]

case studies:
Shrimp Aquaculture Sector in Thailand: A Review of Economic, Environmental and Trade Issues, IIED (International Institute for Environment and Development), Oct-1998
Pollution Control in the Informal Sector: The Ciudad Juárez Brickmakers' Project, Allen Blackman and Geoffrey J. Bannister | February 1998 (Resources for the Future). alternative download site if the above link to rff is broken
Saving the Trees by Helping the Poor: A look at Small Producers along Brazil's Transamazon Highway Summer 1999 | Resources 136. (Resources for the Future).

The Museum of the City of New York, BIG & GREEN: Toward Sustainable Architecture in the 21st Century
CDC Healthy Places web page
City of Seattle: Office of Sustainability and Environment
Greenbiz.com
Redefining Progress
Sustainable Communities Network
West Michigan Sustainable Business Forum

final exam passed out

Reese, Laura A., and Raymond A. Rosenfeld. 2001. "Yes, But . . . : Questioning the Conventional Wisdom About Economic Development". Economic Development Quarterly 15 (4):299-312. [eReserves]