This course studies firm and individual location decisions and how they determine the main economic forces that lead to the existence and performance of cities. The course starts by developing a simple theory of cities and its implications for city size, firm productivity, and housing prices. It then studies
evidence on the impact of cities on firm and worker productivity, urban amenities, and congestion. Finally, the course will study how to evaluate the effect of new infrastructure or policy on land and housing values and overall welfare, and conclude with a brief discussion about systems of cities and industrial clusters.
Prerequisites: ECO 2101 (Microeconomic Theory I), ECO 2400 (Econometrics)