AECO 25A26 - Urban economics

This is an advanced class considering the economic forces that govern the geographic distribution of economic activity and its implications for economic outcomes and public policy issues. The course is divided in two parts. In the first part, we will develop a simple theory of cities as the result of the interaction between agglomeration and congestion forces. We will proceed to study in detail the agglomeration forces that attract firms, consumers, and workers to cities, as well as the congestion forces that limit the size of cities and how to overcome them through transportation networks and housing markets. The second part of the course extends the basic model to study a system of many locations, the dynamics of city growth and decline, and to conclude, the role of cities and geography for climate change.

There will be no final exam. Your grade will be based on 2-3 assessments along the semester that will take the form of written assignments and/or in-class quizzes. Class engagement will also be taken into account. Class engagement consists of reading the articles assigned for the class and being ready to discuss them, as well as generally contributing to the class discussion.