Urban Economics

More than 80 percent of the U.S. population lives in urban areas, which generate nearly 90 percent of the nation’s GDP. This course introduces the field of urban economics, which explores why cities exist, how they grow, and the economic forces that shape them.

The course begins by examining the distribution of people and firms across space and the incentives behind urban location decisions. It then turns to how housing and production activities are arranged within cities, how land is valued, and how it is allocated. The course also addresses the role of local government, including the provision of services, regulation, and municipal finance.

Selected topics such as housing, transportation, income inequality, segregation, and urban sustainability help students apply theoretical and empirical models to real policy challenges. By the end of the course, students will be able to interpret urban economic models, evaluate policies using efficiency and equity frameworks, and apply their knowledge to a specific issue in urban policy.