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Population Density in Suburban Chicago: A Bid-rent Approach

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  • Daniel P. McMillen

    (Department of Economics, Tulane University, New Orleans, LA 70118-5698, USA, dmcmill@mailhost.tcs.tulane.edu)

  • John F. McDonald

    (Department of Economics and Finance, University of Illinois at Chicago, Chicago, IL 60607, USA, johnfmcdonald@uic.edu)

Abstract

Bid-rent theory suggests that the dependent variable of a population density function is unobserved (or population equals zero) if land values are relatively low in residential use. If the errors of density and bid-rent function errors are correlated, bid-rent theory implies that OLS population density estimates are subject to selection bias. Combined land use and density estimates for suburban Chicago confirm these predictions. The results provide further evidence that Chicago cannot be modelled adequately as other than a polycentric city.

Suggested Citation

  • Daniel P. McMillen & John F. McDonald, 1998. "Population Density in Suburban Chicago: A Bid-rent Approach," Urban Studies, Urban Studies Journal Limited, vol. 35(7), pages 1119-1130, June.
    • Handle: RePEc:sae:urbstu:v:35:y:1998:i:7:p:1119-1130
    DOI: 10.1080/0042098984510
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    Cited by:

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    2. Legras, Sophie & Cavailhès, Jean, 2016. "Environmental performance of the urban form," Regional Science and Urban Economics, Elsevier, vol. 59(C), pages 1-11.
    3. Rachel Guillain & Julie Le Gallo & Céline Boiteux-Orain, 2004. "The evolution of the spatial and sectoral patterns in Ile-de-France over 1978-1997," ERSA conference papers ersa04p59, European Regional Science Association.
    4. Julie Le Gallo, 2004. "Hétérogénéité spatiale. Principes et méthodes," Economie & Prévision, La Documentation Française, vol. 162(1), pages 151-172.
    5. Ryan Thomas & Stephan Schmidt & Stefan Siedentop, 2022. "Toward comparative polycentricity scores: Assessing variations in regional delineation and subcenter identification," Environment and Planning B, , vol. 49(6), pages 1597-1611, July.
    6. Cavailhes, Jean & Gaigne, Carl & Tabuchi, Takatoshi & Thisse, Jacques-Francois, 2007. "Trade and the structure of cities," Journal of Urban Economics, Elsevier, vol. 62(3), pages 383-404, November.
    7. Jinlong Gao & Zhixuan Wu & Jianglong Chen & Wen Chen, 2020. "Beyond the bid‐rent: Two tales of land use transition in contemporary China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1336-1356, September.
    8. Jaume Masip Tresserra, 2012. "Does Employment Density death? Towards a new integrated methodology to identify and characterize Sub-Centres," ERSA conference papers ersa12p71, European Regional Science Association.
    9. McMillen, Daniel P., 2001. "Nonparametric Employment Subcenter Identification," Journal of Urban Economics, Elsevier, vol. 50(3), pages 448-473, November.
    10. McDonald, John F. & McMillen, Daniel P., 2000. "Employment Subcenters and Subsequent Real Estate Development in Suburban Chicago," Journal of Urban Economics, Elsevier, vol. 48(1), pages 135-157, July.
    11. Ivan Muniz & Anna Galindo & Miguel Angel Garcia, 2003. "Cubic Spline Population Density Functions and Satellite City Delimitation: The Case of Barcelona," Urban Studies, Urban Studies Journal Limited, vol. 40(7), pages 1303-1321, June.
    12. Sophie Legras & Jean Cavailhès, 2012. "Urban form and sustainable development," INRA UMR CESAER Working Papers 2012/5, INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux.
    13. Jaume Masip Tresserra, 2012. "Identifying the Employment and Population Centers at regional and metropolitan scale: The Case of Catalonia and Barcelona," ERSA conference papers ersa12p70, European Regional Science Association.
    14. LE GALLO, Julie, 2000. "Econométrie spatiale 2 -Hétérogénéité spatiale," LATEC - Document de travail - Economie (1991-2003) 2001-01, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
    15. Frenkel, Amnon, 2002. "The determinants of urban density: the Israeli case," ERSA conference papers ersa02p268, European Regional Science Association.
    16. Ivan Muñiz & Anna Galindo & Miguel Ángel García, 2002. "Cubic spline population density functions and subcentre delimitation. The case of Barcelona," Working Papers wpdea0209, Department of Applied Economics at Universitat Autonoma of Barcelona.
    17. CAVAILHÈS, Jean & GAIGNÉ, Carl & THISSE, Jacques-François, 2004. "Trade costs versus urban costs. Do jobs move to the suburbs or to the sticks ?," LIDAM Discussion Papers CORE 2004021, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    18. Ivan Muñiz & Ana Galindo & Miguel Angel García, 2002. "Urban spatial structure and suburbanisation. The case of the Barcelona Metropolitan," Working Papers wp0202, Department of Applied Economics at Universitat Autonoma of Barcelona.
    19. Rachel Guillain & Julie Le Gallo & Celine Boiteux-Orain, 2006. "Changes in Spatial and Sectoral Patterns of Employment in Ile-de-France, 1978-97," Urban Studies, Urban Studies Journal Limited, vol. 43(11), pages 2075-2098, October.
    20. Carl Gaigné & Jacques-François Thisse, 2006. "Mondialisation, concurrence et métropoles," Revue d'Économie Financière, Programme National Persée, vol. 86(5), pages 47-64.
    21. Julie Le Gallo, 2000. "Spatial econometrics (2, Spatial heterogeneity) [Econométrie spatiale (2, Hétérogénéité spatiale)]," Working Papers hal-01526969, HAL.

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