In this chapter, signs of basic services will be given, such as getting hydrated (and duly performing ‘bodily function’), getting connected and having access to funds.

Chapter 9 examines how the lifestyles of the Love Jones Cohort shape their decision-making when it comes to choosing a neighborhood and how they interact with their neighbors. The choices the Cohort members make as partner- and child-free individuals are of great relevance in terms of understanding the present situation and future direction of the Black middle class. Aside from affordability, Chapter 9 discusses several factors the Love Jones Cohort consider when selecting a neighborhood, including racial composition, safety (physical and psychological), amenities, sense of community, and neighborhood demographics. Chapter 9 shows that even if they were not consciously making their neighborhood choices based on their membership in the Love Jones Cohort, it plays a key role in how they view their residential options. Generally, the Love Jones Cohort are largely unconcerned with how their neighbors regard them; yet they express how they are subject to psychological pressures related to race, class, gender, and their single status.

The organization of space within cities is mainly driven by spatial equilibrium forces. This chapter argues that a person who is indifferent about living in two locations within the city must derive the same net utility from these locations. This allows us to explain how rent costs decline away from the city centre as people need to be adequately compensated for higher transportation costs. We can extend the basic framework to incorporate the choice of different transport methods, changes in the slope of the rent gradient, the choice of the amount of land to use (and thus population density), building height, individual heterogeneity, the role of amenities, and observed segregation within the city.

The possible sources and mechanisms underlying urban agglomeration economies cannot be tested directly, which implies that empirical research uses approximations for agglomeration economies, like city size, density, economic specialization, or human capital. Since these are all endogenous variables, any effect on city wages or productivity cannot be taken as direct evidence of the relevance of agglomeration economies. This chapter discusses modern studies that use micro-data in combination with instrumental variables or fixed effects to assess the relevance of agglomeration economies. Apart from the use of micro-data and clever empirical estimation strategies, we also discuss several alternative strategies for urban economics to further increase our knowledge of the location choices made by people as well as firms between cities. Among these alternative strategies are the quasi-experimental research design, the integration of the two main building blocks (spatial equilibrium and agglomeration economies) in urban economics, a shift of attention from agglomeration benefits to costs, and looking outside the field of economics.

The organization of space within cities is mainly driven by spatial equilibrium forces. This chapter argues that a person who is indifferent about living in two locations within the city must derive the same net utility from these locations. This allows us to explain how rent costs decline away from the city centre as people need to be adequately compensated for higher transportation costs. We can extend the basic framework to incorporate the choice of different transport methods, changes in the slope of the rent gradient, the choice of the amount of land to use (and thus population density), building height, individual heterogeneity, the role of amenities, and observed segregation within the city.

The possible sources and mechanisms underlying urban agglomeration economies cannot be tested directly, which implies that empirical research uses approximations for agglomeration economies, like city size, density, economic specialization, or human capital. Since these are all endogenous variables, any effect on city wages or productivity cannot be taken as direct evidence of the relevance of agglomeration economies. This chapter discusses modern studies that use micro-data in combination with instrumental variables or fixed effects to assess the relevance of agglomeration economies. Apart from the use of micro-data and clever empirical estimation strategies, we also discuss several alternative strategies for urban economics to further increase our knowledge of the location choices made by people as well as firms between cities. Among these alternative strategies are the quasi-experimental research design, the integration of the two main building blocks (spatial equilibrium and agglomeration economies) in urban economics, a shift of attention from agglomeration benefits to costs, and looking outside the field of economics.