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Outlines Urbanization and Economies of Scale: Topics in Network Theory Nicholas J. Linesch Institute of Transportation Studies University of California, Davis May 12, 2009 Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory
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Urbanization and Economies of Scale: Topics in Network Theory

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Page 1: Urbanization and Economies of Scale: Topics in Network Theory

Outlines

Urbanization and Economies of Scale:Topics in Network Theory

Nicholas J. Linesch

Institute of Transportation StudiesUniversity of California, Davis

May 12, 2009

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 2: Urbanization and Economies of Scale: Topics in Network Theory

OutlinesPart I: Context SettingPart II: Transportation and Land Use Networks

Outline of Part I

1 Context for transportation networksMotivationTerms and Definitions

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 3: Urbanization and Economies of Scale: Topics in Network Theory

OutlinesPart I: Context SettingPart II: Transportation and Land Use Networks

Outline of Part II

2 Urban SystemsThe Modern CityUsing software to simulate urbanization

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 4: Urbanization and Economies of Scale: Topics in Network Theory

Context

Part I

Context Setting

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 5: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Flow

Goods

People

Information

Children in Jakarta

Thanks to Shaxun

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 6: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Flow

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 7: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Growth

Baltimore simulated forest land cover showing 200 years of urban growth in yellow.biology.usgs.gov

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 8: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Sustainability

How do these modes interact?

What other systems are impactedby movement and flow?

How are land use andtransportation plans sensitive toone another?

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 9: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Network Properties

Defining a network

A set of nodes or vertices joined together in pairs by lines or edges

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 10: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Networks and Mathematics

Spatial Distribution Network Design Problem

Given a set of things that ‘want’ to move between a setof spatial points V , what’s the cheapest way to get them there?

Gastner & Newman (2006) wants us to think about two specificparts of this question as applied to transportation networks:

How do we determine the points V anyway?

What do we mean by ‘cheapest’? Does how we measure costchange the optimal structure?

(Wuellner on spacial distribution networks, 2009)

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 11: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Network Properties

Cost

Cost =∑

edges(i ,j)

dij where dij is the Euclidean distance between

nodes i and j.

Cost can be measured in travel time and can be influenced bytraffic

Let wij be the amount of traffic between i and j:

Total Travel Cost can be calculated as Z =∑

i<j

wijdij

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 12: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Network Properties

Distance

Euclidean distance

Legs of air travel

Hops an Internet packet will make

Diameter

Largest graph distance between two points

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 13: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Network Properties

Vertex Degrees

The degree of a vertex is the number of edges connected to it

→ A distinguishing characteristic of a network

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 14: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Interstate System

wikimedia.org

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 15: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Interstate Rail System

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 16: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Air Network

Gaster Slides from MAE 298, 2008

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 17: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Information network: Internet

Gaster Slides from MAE 298, 2008

GOTO: http://www.akamai.com Content Delivery Networks

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 18: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Counting Network Edges

Histograms of the lengths of edges in three networks (Gastner & Newman, 2006) Small worlds formed in airlines.

Interstates are more spread out. Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 19: Urbanization and Economies of Scale: Topics in Network Theory

ContextMotivationTerms and Definitions

Zipf’s Law: 1949

(1) ln Rank ! 10.53 " 1.005 ln Size,(.010)

where the standard deviation is in parentheses, and the R2 is .986.The slope of the curve is very close to "1. This is an expression ofZipf ’s law: when we draw log-rank against log-size, we get astraight line, with a slope, which we shall call #, that is very close3

to 1. In terms of the distribution, this means that the probabilitythat the size of a city is greater than some S is proportional to 1/S:P(Size $ S) ! %/S#, with # ! 1. This is the statement of Zipf ’s law.4

3. In fact, the regression above is not quite appropriate. Indeed, Monte-Carlosimulations show that it understates the true # by .05 on average, and understatesthe standard deviation on the estimate, which is around .1. But even given thoseminor corrections, the estimates of # all remain around 1. See Dokkins andIoannides [1998a] for state-of-the-art measurement of #.

4. There are slight variations on the expression of Zipf ’s law. The mostcommon one is the ‘‘rank-size rule,’’which subsection III.4 discusses. Its expressionis less convenient than the above probabilistic representation. Also, Gell-Mann[1994, p. 95] proposes the modification P(Size $ S) ! a/(S & c)#, where c is someconstant. This paper sticks to the traditional representation (with c ! 0) of Zipf ’slaw, for two reasons. First, there is an immense empirical literature that studiesthis representation. Second, theory turns out to say that the representation withthe constant c ! 0 is the one we should expect to hold.

FIGURE ILog Size versus Log Rank of the 135 largest U. S. MetropolitanAreas in 1991Source: StatisticalAbstract of the United States [1993].

QUARTERLY JOURNAL OF ECONOMICS740

Page 740@xyserv1/disk4/CLS_jrnlkz/GRP_qjec/JOB_qjec114-3/DIV_076a05 tres

Figure: Log Size versus Log Rank of the 135 largest U. S. MetropolitanAreas in 1991 Source: Statistical Abstract of the United States [1993]

(Gabaix, 1999)Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

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Urban Systems

Part II

Urban Systems Analysis

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 21: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

2 Urban SystemsThe Modern CityUsing software to simulate urbanization

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 22: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Scaling and Biological Metaphors

Organisms as metabolic engines

Characterized by energy consumption rates, growth rates, bodysize, and behavioral times

Cities as organisms

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

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Urban SystemsThe Modern CityModeling Procedures

Scaling and Biological Metaphors

A metabolic engine is a consumer of resources

Consider biological scaling

Almost all physiological elements scale with body mass = M

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 24: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Scaling and Biological Metaphors: Generalized Case

Consider M as a body mass

M has a metabolic rate, B

B is the energy required to sustain the organism

B ∝ M34 , typically the exponent is a multiple of 1/4 (or

1/(1+d) in d-dimensional space

y = x3/4

The metabolic rate per unit mass: BM ∝ M

−14

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

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Urban SystemsThe Modern CityModeling Procedures

Scaling and Biological Metaphors: Examples

M1−β ≈ M1/4 can be used to scale physiological times (lifespans, turnover time, etc.)

M1−β ≈ M−1/4 can be use to scale associated rates (heartrate, population growth)

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 26: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Scaling and Biological Metaphors: Examples

M1−β ≈ M1/4 can be used to scale physiological times (lifespans, turnover time, etc.)

M1−β ≈ M−1/4 can be use to scale associated rates (heartrate, population growth)

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 27: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Scaling and Biological Metaphors: Generalizable Items

Rates

Times

Internal structures

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 28: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Bettencourt equation

Bettencourt et. al (2007) go on further to describe urban growthand decay with a power law function

Y (t) = Y0N(t)β (1)

Where N is the population,Y is material resources (such as energy or infrasturcture),Y0 is a normalization constant

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 29: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Application to the Modern City

Data collected to understand scaling of the urban metabolism

Data is grouped by metropolitan statistical areas (MSAs), andlarger urban zones (LUZs)

The data set is applied to the scaling equation described inthe previous slide

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 30: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Scaling and Biological Metaphors

a)Total wages per MSA vs. metropolitan populationb) Supercreative employment per MSA vs. metropolitan population

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 31: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Scaling and Biological Metaphors

a) Scaling of walking speed vs. population for cities around the world.b) Heart rate vs. the size (mass) of organisms

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

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Urban SystemsThe Modern CityModeling Procedures

Scaling exponents for urban indicators vs. city size

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

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Urban SystemsThe Modern CityModeling Procedures

Introduction to Land Use Modeling Software

Software package

Built by team at University of Washington

Open source software used for simulating growth ofmetropolitan regions

Series of discrete choice models is run to determine the finalland use outputs

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 34: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

UrbanSim: Land Use Modeling Package

UrbanSim Model Components and Data Flow

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 35: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Key Features of the System

Simulates key decision makers and choices that impact urbandevelopment

Accounts for land, structures, and occupants

Urban development simulated as dynamic process over timeand space

Incorporates governmental policy assumptions

Returns disaggregate information by parcel

Simulates development and redevelopment

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 36: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Key Features of Implementation

Linux, Mac OS, and Windows compatible

Code predominantly implemented in Python

Open source and downloadable

User interface focusses on model configuration, datamanagement, and scenario evaluation

Object oriented programming

Results are GIS compatible

Binary files used for reading and writing, can be converted toshapefile, database, etc.

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 37: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Discrete Choice Equations

Utility Function

Ui = Vi + εiVi = βxi is a linear-in-parameters function and β is a vector of k estimator coefficients

Probability Function

Pi = eVi∑j eVj

j is an index over all possible alternatives

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 38: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Sub-model routines

Real estate price model

Building transition modelHousehold transition model creates andremoves households and updates the set of personsaccordingly. It is based on random sampling and is drivenby macroeconomic predictions.

Business transition model

Household relocation choice model

Household location choice modeldetermines households for moving, using a logit model.

Business relocation model

Business location choice model

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 39: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Business Growth in San Francisco

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 40: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Business Growth in San Francisco

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 41: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Business Growth in San Francisco

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 42: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

A Quick Video Presentation of UrbanSim

Goto: http://www.youtube.com/watch?v=nmBnRAde5Xw

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 43: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Population Growth in San Francisco

Figure: Year 2001

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 44: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Population Growth in San Francisco

Figure: Year 2010

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 45: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Population Growth in San Francisco

Figure: Year 2020

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 46: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Population Growth in San Francisco

Figure: Year 2030

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 47: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Employment Growth in San Francisco

Figure: Year 2001Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 48: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Employment Growth in San Francisco

Figure: Year 2010Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 49: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Employment Growth in San Francisco

Figure: Year 2020Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 50: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Employment Growth in San Francisco

Figure: Year 2030Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 51: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Jobs by Sector in San Francisco

Year 2001

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 52: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Jobs by Sector in San Francisco

Year 2010

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 53: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Jobs by Sector in San Francisco

Year 2020

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 54: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Jobs by Sector in San Francisco

Year 2030

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 55: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Activity Based Modeling Scenario: Auto Networks

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 56: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

Activity Based Modeling Scenario: Transit Networks

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 57: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

What to do with land use forecasts?

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 58: Urbanization and Economies of Scale: Topics in Network Theory

Urban SystemsThe Modern CityModeling Procedures

What to do with land use forecasts?

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory

Page 59: Urbanization and Economies of Scale: Topics in Network Theory

Conclusion

Next Steps

Land use model validation

Solidify key links between network theory and urban modeling

Further quantify the urban metabolism for long term planning

Generalize for generic metropolitan implementation

Nicholas J. Linesch Urbanization and Economies of Scale: Topics in Network Theory