a companion to urban economics - arnott and mcmillen - index

McMillen Copyright © 2006 by Blackwell Publishing Ltd.

Activity-Based Approach (ABA) 263, 264

aerial photography 81, 85, 93

Africa, GDP per capita 63–7

agglomeration economy 3, 7–22, 35, 66,

89, 90–1, 251, 313, 315, 324–8, 406

geographical scope of 16–18

sources of 12, 18–20

agglomeration, index of 19

agriculture 4, 40–1, 42, 44, 46, 47, 49, 50

AHS see United States, American Housing

Survey

air pollution 143, 502–14

aggregate emissions 505–6

ambient 505–6

and bronchitis 512

government actions 506–8

sources of emissions 504–5

airport 290, 315, 316, 321

Alabama

gross state product 443

response to funds rate increase 454

small-bank loans 446

small-firm employment 445

allocation

equilibrium 121–3

Pareto-optimal 114–19

Alonso model 75–6, 109, 110, 113–14,

126, 281

amenities, urban 483–6

Angola, GDP per capita 56

Antigua, GDP per capita 67

apartheid 60–1, 537, 545, 551, 552

Argentina 62, 312 air pollution 504 Arizona

gross state product 443 response to funds rate increase 453,

454, 455 small-bank loans 446 small-firm employment 445 Arkansas

gross state product 443 response to funds rate increase 454 small-bank loans 446

small-firm employment 445 Asian debt crisis (1998) 219, 221–2 Atlanta, GA

employment growth 420 ghettoization index 539, 540 land use 87, 91, 92, 289 residential mobility 405–7, 408 spatial mismatch 421, 411 unemployment rate 419 auctioneer, Walrasian 145 Austin, TX, software development 9 Australia

business land tax 316 population density 57 property tax 348 real estate 144 Babylonia 46–50 bullae 51–2 cities in 53

A Companion to Urban Economics

Edited by Richard J Arnott, Daniel P McMillen Copyright © 2006 by Blackwell Publishing Ltd

Babylonia (cont’d)

kin groups 47, 51, 53

see also Mesopotamia backyard economy 2

Baltimore, MD

ghettoization index 539 spatial mismatch 421 Bangladesh, population density 57

bank size 444, 457, 458

barter 47, 50, 51, 52, 53

base multiplier 463–7, 468, 471, 477

BEA see United States, Bureau of

Economic Analysis Belgium, urban transport subsidy 302

bicycle use see Netherlands

BID see United States, business

improvement district bid-rent analysis 76, 99–100, 103–5, 106,

108, 281–2, 285, 290, 423–5, 434, 435, 482

binary choice model 265–6

Birmingham, AL, spatial mismatch 411

birth studies 15, 16, 21

BJS see United States, Bureau of Justice

Statistics blockbusting 546

Bloomberg, Michael 22

borrowing, city 316–17

Boston, MA

employment growth 420 ghettoization index 538 healthcare industry 311 high tech industry 476 household relocation 177 land use 92

local government 308 mortgage lending 206 Moving to Opportunity program 523–4 population density 132

Route 128 20 software development 9, 10, 20, 21 unemployment rate 419

Botswana

GDP per capita 65 HIV 65

Box–Cox methods 489, 491, 493

Brazil 14

city deficits 317 devaluation 312

favelas 537

Buffalo, NY, ghettoization index 538 Build–Operate–Transfer (BOT) 262 Burma, GDP per capita 56

Burundi, GDP per capita 67 business cycle 441, 442, 447, 457 California

city financing 323 city services 323 gross state product 443 Montrose Technology Park project 212–16, 219–23, 225–7 pollution 508–9

Proposition 13 323, 352–3 Proposition 60 353 response to funds rate increase 455, 456 small-bank loans 446

small-firm employment 445 software development 9, 10, 22, 36–7 wine industry 7, 8

Canada acid rain 506 air pollution 509 and fiscal federalism 309 GDP per capita 56 PM-10 particulate emissions 509 population density 57, 60 capital market 211, 214, 221–3, 225, 226 capital structure 222

capital, agglomeration of 7 capital–land ratio 101, 130–1, 132, 362 Çatalhöyük (Çatal Hüyük) 40, 41, 43–6, 50

architecture 44 development of 45–6 kin groups 45, 53 production and trade 44–5

as regional trading center 45 religion 45

specialization 45 causality 15, 468–9

CBD see central business district

Center for International Earth Science Information Network 57–8 central business district (CBD) 74, 75–6,

89, 96, 97, 99, 101, 102, 103, 107, 129–40, 356, 390–1, 423–4, 426, 428–9, 433–7

centrally planned economy see economy,

centrally planned

CET see United States, Center for

Employment Training

Charleston, SC, quality of life index 497

Charlotte, NC, financial services sector

467

Chicago, IL

employment growth 420

floor-area ratio 137–8

ghettoization index 539

Greektown 543

housing relocation 177

land values 134

mass transit 289–90

as monocentric city 390

population density 58, 60, 133, 136

population growth 62, 87, 135, 311

real estate values 144

spatial mismatch 405, 411, 421

specialization 66

transportation infrastructure 61

unemployment rate 419

urban subcenters 89, 390

zoning 282, 289–90

Childs, Richard 374

China

air pollution 511, 514

city development 60

“commodity housing” 182–3

commuting 60

economic reform 182

electric utilities 506

floor space 189–91, 193–4

guanxi, role of 191

housing demand 179–80, 181, 182–3,

189–91, 193–4

Housing Funds 183

housing market 143, 180–5

housing subsidy 183

new housing policy (1998) 183

one-child policy 194

population density 57

primacy index 68

rural–urban migration 194–5

state-owned enterprises (SOE) 182–3

urbanization rate 62, 67

Cincinnati, OH, ghettoization index 538

city 24–38

business services 321

car use in 293–5

climate as amenity 481

“closed” 104, 105, 107–8, 131 council government 314, 319–21, 322,

327, 328 decentralization of 390, 391, 405, 408,

412, 415–16, 428 defense of 41, 42–3, 44, 46, 53 definition of 2

as economic center 313 financing 311–31 first cities 4, 40–53

“fractal” 88, 92 ghettoization of 418 governance of 326–8 growth cycle 461–2, 463

“high-wage” 30 infrastructure 313–16, 321, 322, 323,

326, 328 land values 326 log-rolling 320, 327

monocentric see monocentric city model

“open” 104 optimum size 69 policy gridlock 320 political administration 4

polycentric see polycentric city model

poverty 311, 312, 315, 324–5, 328 property values 324, 327–8 public services 313–15 contracting out 318–19, 327

see also public services and religion 40, 41, 43, 45, 47–51, 53 residential services 319–21

role of 312–13 shared infrastructure 321 size 3, 9, 12, 13, 14 and crime 522 spatial structure 356 spillovers 322 strong mayor government 314, 319,

320, 321, 326, 327, 328 tax assignment 325–6 transaction costs 503 transportation in 242 and value 312–13, 323–8 Cleveland, OH

ghettoization index 538 population growth 87 spatial mismatch 421 climate, amenity value of 7, 30, 46, 55,

75, 153, 303, 393

“closed-city” model see city, “closed”

CMBS see commercial mortgage backed

security Coase Theorem 553

Cobb–Douglas reaction function 336–7

cointegration 469–71

Colorado

gross state product 443 response to funds rate increase 455–6 small-bank loans 446

small-firm employment 445 Columbus, OH, ghettoization index 538

commercial mortgage backed security

(CMBS) 222 commercial space, market for 213–16

communism 504–5

commuting 74, 75, 81, 87, 89–90, 91, 97,

106, 107, 110, 113–20, 123, 124, 126,

128, 129, 131–2, 135, 136, 139, 263,

265, 315–16, 325, 326, 386, 387, 390–2, 406–9, 410, 412, 413, 416, 422–5, 426, 429–38

comparative advantage 66

comparative statics 104–6, 128, 131–2, 486

compensating differential theory 394

competition, imperfect 145, 146

competitive equilibrium 112–13, 120

condominium 152–3, 184

congestion 25–6, 33, 35, 41, 74, 87, 89, 91,

107, 129 pricing 242, 244, 251, 271–8 theory of 242–4, 245–8, 251, 254, 255, 257

toll 243, 244, 246, 251, 261, 262, 267, 271–3, 275, 276, 277, 279

Connecticut

gross state product 443 population density 57–8 response to funds rate increase 454 small-bank loans 446

small-firm employment 445 constant returns to scale (CRS) 100–2, 103

Constantinople 536

contract curve 111–12, 114–19, 123–4

Cook County, IL

Assessor’s Office 137, 144 floor-area ratio 137–8 corporate finance, principal agent model

of 153 corporate governance, municipal 372–83

cost–benefit analysis 143, 258–9 country data, analysis of 56, 62, 65 credit risk 197, 198, 199, 200, 205, 209 credit scoring 198, 200, 202, 203, 209–10 crime 26, 74, 87, 292, 304, 406, 407, 408,

418, 480, 481, 484, 488, 489, 490, 492,

495, 497, 499, 513 categorization of 516–17 and city size 522 and education 525–9 and socioeconomic status 516, 518–21, 524–34

urban 515–34

see also United States, crime rates in metropolitan areas; United States, urban crime

cross-country analysis 26 cross-section analysis 26 cubic spline method 133, 137

“Cult of Skulls,” Jericho 43 Cyprus, ethnic segregation 545, 552 Dallas, TX

employment growth 420 ghettoization index 539 residential development 90 unemployment rate 419 Dead Sea 42, 43, 45 deadweight loss (DWL) 249–50, 251, 258, 260

decentralization, urban 77, 87–8, 89, 92,

93, 94 Delaware gross state product 443 response to funds rate increase 454 small-bank loans 446

small-firm employment 445 Denmark, GDP per capita 67 density, urban 88–9

Denver, CO ghettoization index 639 population density 57 Detroit, MI

automobile industry 463–5 banking industry 467 employment growth 420 ghettoization index 538 location quotient 467–8, 475 manufacturing 472–3, 475, 476 mass transit 431

spatial mismatch 405, 421

time series analysis 461–2

unemployment rate 419

development

discontinuous see leapfrogging

taxonomy for 56

and urbanization 65–9

Dickey–Fuller test, augmented 469

Digital Electronics Corporation 18, 20

discrete-choice model 262, 264–70, 271

discrimination

racial see racial discrimination

statistical 197

dissimilarity, index of 420, 421

Djibouti, GDP per capita 67

“double taxation” problem 349

durable investment 147–9

DWL see deadweight loss

econometrics, structural 12

economic activity, spatial pattern of 2, 3

economic development

level of 56

patterns of 56–65

economic growth 13, 15, 16, 21

economy of scale 56, 65–7, 309, 315, 318

external 3, 9, 15, 20

internal 9

economy, agglomeration see agglomeration

economy

economy, centrally planned 4, 49, 60

economy, localization see localization

economy

economy, subnational see subnational

economy

economy, urbanization see urbanization

economy

Edgeworth box 75, 111–12, 115–17, 118,

120

education 25, 26, 29–32, 34, 35, 38, 313,

318, 319, 322, 327, 361, 369, 480, 481,

483, 484, 488, 489, 492, 495, 497, 499,

500

K-12 314, 315, 318, 319, 322, 325, 327, 328

school attendance 407–8, 417

subsidies to 25, 26, 28, 29, 34

effect, fixed see fixed effect

efficiency wages 393–4, 421–2, 425–8,

431, 432, 433, 436, 437

EKC see environmental Kuznets curve

employment 15, 16, 283, 285, 289–90, 399,

420, 445, 460–77 Engels, Friedrich 504 Engle, Robert 388 Enron 317 environment 57, 301–3

see also air pollution; pollution environmental Kuznets curve (EKC) 510, 511

EPA see United States, Environmental

Protection Agency Erudi, Babylonia 46

ES see United States, Employment Service

estimator, nonparametric/semiparametric 133

Ethiopia and Eritrea, GDP per capita 67 ethnic segregation 536–53

efficiency of 548–51 public policy and politics of 551–3 ethnicity 197, 199, 201

see also race; racial discrimination Euphrates river 46

Europe, gasoline tax 246 European Central Bank (ECB) 442 European Monetary Union 442 European Union 195, 348, 388, 552 and fiscal federalism 309, 310 eviction 150, 151

excise tax effects 357, 362, 364, 365 externality 292, 295–6, 298, 299, 302, 304 ability 34–5

human capital 24–38 internalized 34–5 Jacobs 66 Marshall–Arrow–Romer (MAR) 66 reciprocal 27

exurban county 81, 83–5, 90, 93, 94

FHA see United States, Federal Highway

Administration firm size 444, 457 First Welfare Theorem 75 fiscal federalism 308–9, 358 Fisher Ideal formula 232 fixed effect 31

Florida gross state product 443 response to funds rate increase 454 small-bank loans 446

small-firm employment 445

FOMC see United States, Federal Open

Market Committee Fort Lauderdale, FL, ghettoization index

539 Fourier expansion 133

France 15, 37, 56, 62, 313

Algerian ghettos 482, 537 construction-subsidized housing 162–3

Epargne Logement 164 French Housing Survey (1996) 169–70 government housing policy 143, 160–5

habitation à loyer modéré (HLM) 160, 162–3, 165–71, 175, 176

housing subsidies 172

Livret A financial circuit 162 low-income households 159–77 Ministry of Housing 175 notary act 160

Prêt à Taux Zéro (PTZ) 159, 164, 174–6

Prêt Conventionné (PC) 164

Prêt d’Accession à la Propriété (PAP) 164 private rental sector housing 171–4 public spending 165, 166

unemployment rate 422 free-rider problem 48, 49, 51, 53

Furlong, Tom 18

GAAP see generally accepted accounting

practices Gary, IN, pollution 504

GDP per capita 56–7, 63–5, 67–8

general equilibrium demand function

251–2, 253 generally accepted accounting practices

(GAAP) 317 Geographic Information and Retrieval

Analysis System (GIRAS) 85, 87, 90 geographic information software (GIS)

512, 513 Georgia

carpet industry 9, 11, 19, 22 gross state product 443 response to funds rate increase 453,

454, 455 small-bank loans 446 small-firm employment 445 Germany 22, 62

Bausparkassen system 164 trade 66

Turkish ghettos 482, 537, 552

Ghana 56 ghetto 482 derivation of term 537 and discrimination 544–5 and education 551 and exclusion 544, 545 involuntary 543–6 multiethnic 543 optimal size 548 and prejudice 544 and racism 544 sectoral pattern of 549 self-segregation 541–2 voluntary 542–3 Chinatowns 537, 538, 542–3 ghettoization 536–53

and rents 546–8 index 538–40

GIRAS see Geographic Information and

Retrieval Analysis System

GIS see geographic information software

governance, city 326–8 government

strategic interaction 332–45 system of 308

Granger causality 468–9 Granger, Clive 388 grant-in-aid, intergovernmental 309, 313 Greece, Ancient 4, 536

Greenpeace 510 gross state product (GSP) 443–4, 447–8, 457

see also individual US states

Gumbel distribution 266, 269 Hampton City, VA, quality of life index 497

Hartford, CT, ghettoization index 538

HBU see space market analysis, “highest

and best use”

health production function (HPF) 512 hedonic model 143, 228–39, 480, 481,

489, 490, 491, 492, 512, 513, 514 Henry George Theorem 360, 361, 366 heterogeneity 154–5

HLM see France, habitation à loyer modéré HMDA see United States, Home Mortgage

Disclosure Act home value insurance 382–3 homeownership 164–5, 174–6

“homevoter” 376–9

Hong Kong

population density 57

primacy index 68

urbanization rate 67

Hoover, Herbert 380

household

African-American 203–5, 206

low-income 159–77

housing 141–239, 282, 287–9

allowances 171–4

appreciation 147

demand 179–95

depreciation 147, 148

durability of 143, 145, 146, 147–9, 153

equity 170–1, 219, 221–3, 349

“hold up” problem 150

investment in 144, 147–9, 150, 152, 153,

156, 159

lock-in effects 153, 156, 157

market 145, 157, 180–5

mobility trap 167

policy 159–77

price index 228–39

hedonic price model 230–2

hybrid model 234, 239

repeat-sales model 232–4

representative-property method 230,

236, 237

prices 138–9, 155–7, 180, 181, 183, 185,

187, 188, 191, 192

private rental sector 171–4

public 143

racial transition 382

subsidies 173–6

tenure choice 145–57, 185–9

vacancy rate 144, 145, 146, 147, 154–7,

216–17, 218, 219, 220, 227

Houston, TX

employment growth 420

ghettoization index 539

spatial mismatch 421

unemployment rate 419

vacant land 88

HPF see Health Production Function

HUD see United States, Department of

Housing and Urban Development

human capital externalities 24–38

Hungary, air pollution 504–5

hunter–gatherer communities 41, 42

Idaho gross state product 443 response to funds rate increase 455 small-bank loans 446

small-firm employment 445

IIA see Independence of Irrelevant

Alternatives Illinois

Department of Revenue 137 gross state product 443 response to funds rate increase 454 small-bank loans 446

small-firm employment 445 immigration 387, 395, 398, 401 impulse response function 475 Independence of Irrelevant Alternatives (IIA) 267–8, 277–8, 279

India 56, 312 air pollution 511 Dhavari slum community 537 electric utilities 506

Gujarat riots (2002) 543, 552 Muslim ghettos 482, 538 population density 57 primacy index 68 urbanization rate 62 Indiana

gross state product 443 response to funds rate increase 453, 454

small-bank loans 446 small-firm employment 445 Indianapolis, IN

ghettoization index 538 spatial mismatch 411 indifference curve 97, 98, 99, 110–12, 116–17, 119

industrial organization 20–1 Industrial Revolution 4, 62

“industry is in the air” argument 35 industry

high-technology 9, 13–14, 15, 22 location of 16–18

size of 3, 9, 12, 13, 15, 21 inequality, politics of 551–3 inflation, and housing 148 information, imperfect, theory of 145, 147

infrastructure, nonexcludability property 296

innovation 12, 15, 18, 19, 21, 36–7, 41, 43,

46, 52, 53 input sharing 12, 18–19

institutionalization see United States,

institutionalization; United States, prison population

instrumental variables (IV) 15, 30–1, 342,

344, 395, 398 insurance, home value 382–3

internal rate of return (IRR) 224–7

Internet boom 30, 31

interregional trade, Babylonia 50

inventory–sales ratio 20

investment analysis, real estate 223–5

investment

in housing 144, 147–9, 150, 152, 153,

156, 159 return on 223 Iowa

gross state product 443 response to funds rate increase 454 small-bank loans 446

small-firm employment 445 Iraq 40, 46

Ireland, property tax 348

IRR see internal rate of return

isoquant 101–3

Israel 312

ethnic segregation 545, 552 Italy 312–13

Jacobs externality 66

Jamaica, land taxation 350

Japan 14, 312

congestion pricing 257 demography 195 floor space 189–94 gasoline tax 246 GDP per capita 56, 67 housing demand 179–82, 185–94, 195

Housing Loan Corporation ( JHLC) 180–1, 191–3

housing market 143, 180–5 housing subsidy 180–1, 191, 192–4 housing tenure choice 185–6, 187–9 land price bubble 182

personal taxation 189, 194 population density 57 property taxation 186–9

real estate 144 residential overcrowding 191, 194 urban mass transit 245–6, 248, 257 urbanization rate 62, 67

Jericho 40, 41–3, 45, 46, 53

“Cult of Skulls” 43 development of 43 walls of 42–3

JHLC see Japan, Housing Loan

Corporation jitney 416 job opportunity model 409 Jobs, Steve 17

Jordan Valley 40, 41–2, 50 Jordan, GDP per capita 67 Kalb, Jeffrey 20–1

Kansas City, ghettoization index 538 Kansas

gross state product 443 response to funds rate increase 454 small-bank loans 446

small-firm employment 445 Kent, MI, quality of life index 497 Kentucky

gross state product 443 response to funds rate increase 454 small-bank loans 446

small-firm employment 445 Kenya, land taxation 350 Keynesian model 465, 471–2 Kish, Babylonia 46

knowledge spillover 12, 15, 18, 19, 20, 36 Konya plain, Turkey 43, 45

Korea, North, GDP per capita 63 Korea, South

population density 57 urbanization rate 62

Kuznets curve see environmental Kuznets

curve labor market adjustment 394–400 hysteresis 397 intervention 399–400 pooling 12, 18, 19, 20, 35 urban 385–77

demand shock 395–7 spatial mismatch 404–17 supply shock 398–9

agglomeration of 7

urban, economic theory of 418–38

land conversion

hazard model of 91

rural–urban 77, 79–80, 90, 91, 92, 93

land grant 31, 49

land rent 58, 74–6, 89, 107–8

land taxation 348–69

efficient 358–61

equilibrium 358–61

incidence of 353–5

neutrality of 351, 354, 355, 357, 361,

365

land use

control 350, 368

pattern of 77–94, 107, 281, 283, 284, 289

regulation 372–83, 405, 412, 416

urban 73–140, 142, 244

and urban transportation 281–90

land, agricultural 131–2

landlord

absentee 119–20, 121, 126

market power of 150, 154, 155, 159

Laos 56

GDP per capita 63

Las Vegas, NV, growth rate 472

Laspeyres formula 232

latent demand 262

leapfrogging 90–1, 93–4

Lebanon, GDP per capita 67

Liberia, GDP per capita 67

life expectancy 57

life insurance 222

LIHTC see United States, Low Income

Housing Tax Credit

Linear Random Utility Model (LRUM)

265, 269

literacy 57

loan-to-value ratio (LTV) 160, 175, 198,

199, 200, 206, 207

local government reform 310

localization economy 3, 12–16, 17, 66

location quotient 463, 467–8, 470, 471,

472, 473, 474, 475

location, importance of 55

logit model 266, 267, 409

mixed 269–70

nested 268–9

see also multinomial logit model

Los Angeles, CA employment growth 420 entertainment industry 312 ghettoization index 539 home price model 513 Hughes Air 14 labor market 386 land use 87, 91 mass transit 245 pollution 502, 507 population density 58, 60 spatial mismatch 411, 421 specialization 66

time series analysis 461–2 unemployment rate 419 urban subcenters 89, 390 Louisiana

gross state product 443 response to funds rate increase 454, 455

small-bank loans 446 small-firm employment 445 Luxembourg, GDP per capita 67 macroeconomics, urban 385–477 Maine

gross state product 443 response to funds rate increase 454 small-bank loans 446

small-firm employment 445

MAR see Marshall–Arrow–Romer

externality marginal cost pricing 242–3, 247, 250,

254, 258 market failure 35–6 market, thin 154–5 Marshall, Alfred 12, 13, 18, 25, 32, 35, 66 Marshall–Arrow–Romer (MAR) externality 66

Marx, Karl 504 Maryland Department of Planning (MRP) 81–5 gross state product 443

Howard County Office of Planning 85–6

land conversion data 91 land use 77, 81–5 response to funds rate increase 454 small-bank loans 446

small-firm employment 445

mass transit 262, 289–90, 429, 431, 434

Massachusetts

gross state product 443 population density 57–8 Proposition 21/2 327 response to funds rate increase 454 small-bank loans 446

small-firm employment 445 tax assignment 327

Mauritius, GDP per capita 65

maximum likelihood (ML) methods 342,

344 McFadden, Daniel 242, 243, 244

MCSUI see United States, Multi-City Study

of Urban Inequality mega-city 68, 504

Mesopotamia 40, 46–53

ecological setting 46–7 public goods 48–9 religious beliefs 46–7 temple enterprises 49–51 writing technology 51–2

see also Babylonia

metropolitan statistical area see United

States, metropolitan statistical area Mexico 56, 63, 312

air pollution 510 urbanization rate 62 Miami, FL

ghettoization index 538, 539 quality of life index 499 spatial mismatch 421 Michigan

gross state product 443–4 response to funds rate increase 453, 454

small-bank loans 446 small-firm employment 445 microeconomic theory 100–13, 118

Middle East 4

migration, of labor force 396, 397, 398–9

Milwaukee, WI

ghettoization index 538, 540–2 population density 132, 133 minimum border-length hypothesis 549

Minneapolis, MN

ghettoization index 538 Neighborhood Employment Network 400

software development 9

Minnesota gross state product 443 response to funds rate increase 454 small-bank loans 446

small-firm employment 445 Mississippi

gross state product 443 response to funds rate increase 454 small-bank loans 446

small-firm employment 445 Missouri

gross state product 443 home value insurance 382 response to funds rate increase 454 small-bank loans 446

small-firm employment 445

MLS see United States, multiple listing

service

MNL see multinomial logit model

mobility cost 145, 146, 149, 154 mobility trap 167

modal choice 107 monetary policy 440–58 monocentric city model 74–5, 76, 87, 88–9, 90, 96–108, 142, 356 empirics 129–38

floor-area ratio 130–1, 136–8, 139, 282, 290

housing consumers 129–30 housing prices 138–9 housing producers 130–1 land values 134–6 population density 134–6 monocentricity, testing for 128–40 monopoly 50–1

pricing 295, 296, 318 Montana

gross state product 443 response to funds rate increase 455 small-bank loans 446

small-firm employment 445 Monte Carlo simulation 450 mortgage lending 143, 147, 148, 153, 156,

157, 198–201 differential pricing 207–8 differential rejection rates 205–7 discrimination in 197–210 performance 204–5 segregation of applicants 203–4 segregation of loans 203–4