| This paper develops a dynamic multiple-city model in which the spatial structure of each city is considered explicitly. The rise and fall of the cities in a country are explained by the spatial distribution of durable housing capitals with or without vintage values. This paper uses a new approach by combining the traditional urban theory such as Anas (1978) with the new theory of urban system such as Black and Henderson (1999).; The first chapter sets up, by extending Anas (1978), a basic model of multiple-city development without vintage value. The model characterizes the growth of cities that are founded one-by-one. It is shown that, if certain conditions are satisfied, an older city is to have smaller houses and the city center or the boundary is to be the most "obsolete" location in each city. Some policy implications are also shown.; The second chapter extends the model. Section 2.1 introduces the role of vintage value and shows that a model with historic structures can adequately characterize a city that does not decline. Section 2.2, 2.3, and 2.4 are the extensions with future expectation, redevelopment and migration, respectively.; The third chapter presents empirical studies. It shows, using data on Boston, Denver and national data, some very old houses have higher economic value than other moderately old houses (controlling for all other factors.) Short analyses on the probability of remodeling and redevelopment are also performed. |
