KGLM 2115 - Economics of the Large Metropolis

The first part of the course is devoted to the microeconomics of within- and between city spatial organisation. This will typically answer the following questions. Why do cities exist and induce an uneven spatial distribution of income, and of land and commodity prices? How households choose where to locate and why cities of different size co-exist within integrated economic areas? What does shape the city internal structure, in terms of housing prices, housing types and income segregation? What is the role of local public policies, in particular transport, and of land use regulation on spatial inequality?

The second part of the course moves to the empirical studies that evaluate the gains and costs from spatial concentration. A special emphasis is put on the role of spatial sorting of workers that are heterogeneous in skills. The balance between income gains and costs of living is studied, typically questioning whether cities are too large or too small. Studies about the value of consumption amenities (restaurants, cultural life, climate,…) will be presented too.

12 x 2 hours sessions

In-class 2-hour intermediate exam (after 2/3 of the classes) (50% of the total mark): Essay on a newspaper article to be commented using the course

Home essay (over a 3-week period after the end of the course) (50% of the total mark): report or book chapter to be summarized, commented, and discussed OR four one-page notes (to choose among 6) to write on general questions in urban economics.