Department of Economics Seminar with Dr Marc Teignier, Universitat de Barcelona Structural Change, Land Use, and Urban Expansion

Marc's research spans economic growth, development and macro. He is currently working on topics related to the macro effects of gender inequality, and the causes and consequences of structural change.

Abstract: How do cities grow in the process of structural transformation? To answer this question, we develop a multi-sector spatial equilibrium model with endogenous land use: land is used either for agriculture or housing. Urban land, densely populated due to commuting frictions, expands out of agricultural land. With rising productivity, the reallocation of workers away from agriculture frees up land for cities to expand, limiting the increase in land values despite higher income and increasing urban population. Due to the reallocation of land use, the area of cities expands at a fast rate and urban density persistently declines, as in the data over a long period. Quantitative predictions of the joint evolution of density and land values across time and space are confronted with historical data assembled for France over 180 years.