Knowledge that Transforms

I am indebted to E. J. Berg, A. V. Deardorff, J. D. Richardson, W. F. Stolper, members of the Research Seminar in International Economics at the University of Michigan, and anonymous referees for helpful comments on an earlier version of this paper. Financial assistance was pro. vided in part by National Science Foundation grant GS-3073 to support research in international economics at the University of Michigan.

I am indebted for helpful comments on earlier versions of this paper to Akira Takayama and Gerhard Tintner. Valuable suggestions concerning style and substance have been made by William A. Brock, Bryan Ellickson and Gilles Paquet. Since some of the issues raised in the recent literature have been-and still are-highly controversial, I must strongly emphasize that all responsibility for the vietvs expressed and the interpretations ogered rests with me alone.

A large literature has grown up in urban economics in the last decade. It can be broadly classified into: 1) studies of the growth, composition (industry and population), and spatial form of urbanized areas; and 2) analyses of problems such as congestion, discrimination in housing and employment, and the fiscal difficulties of cities. This paper concentrates on the former, where the contributions from other disciplines have been as important as those from economics. Part One of the paper deals with models of growth and intra-urban land use. Part Two is devoted to urban simulation and efforts to build large scale statistical models for analyzing, among other things, the impact of alternative government policies on patterns of urban development.