Urban Economics

2.

Economic Theory of Cities

2.1.

Economic Rationale for Urban Concentration

2.1.1.

Comparative Advantage

2.1.2.

2.1.3.

Transaction Costs

2.1.4.

Proximity Benefits

2.2.

Economies of Scale

2.2.1.

Internal Economies of Scale

2.2.1.1.

Production Efficiencies

2.2.1.2.

Cost Reductions from Scale

2.2.1.3.

Firm-Level Benefits

2.2.2.

External Economies of Scale

2.2.2.1.

Shared Infrastructure

2.2.2.2.

Network Effects

2.2.2.3.

Industry Clusters

2.3.

Agglomeration Economies

2.3.1.

Localization Economies

2.3.1.1.

Knowledge Spillovers within Industries

2.3.1.2.

Labor Market Pooling

2.3.1.3.

2.3.1.4.

Specialized Services

2.3.2.

Urbanization Economies

2.3.2.1.

Diversity of Intermediate Inputs

2.3.2.2.

Cross-Industry Knowledge Spillovers

2.3.2.3.

Consumer Variety

2.3.2.4.

Infrastructure Sharing

2.3.3.

Dynamic Agglomeration Effects

2.3.3.1.

Innovation and Entrepreneurship

2.3.3.2.

Learning and Human Capital

2.4.

Forces of Dispersion

2.4.1.

Congestion Costs

2.4.2.

Pollution and Environmental Degradation

2.4.3.

High Land Rents

2.4.4.

Crime and Social Disamenities

2.4.5.

Diseconomies of Scale

2.4.6.

Quality of Life Factors

Previous

1. Foundations of Urban Economics

Go to top

Next

3. System of Cities