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 THE FIVE AXIOMS OF URBAN ECONOMICSUrban economics explores the location choices of households and firms, and so it is natural to assume that people and firms are mobile. Of course, people don’t instantly change their workplaces and residences when circumstances change; therefore, a model of perfect mobility tells us...

 WHY DO CITIES EXIST?This is the fundamental question of urban economics. People need land to produce food and other resources, and living in dense cities separates us from the land where food is produced. As Bartlett (1998) points out, no other creatures in the animal world form anything like cities. Herbivores such...

 WHAT IS A CITY?An urban economist defines an urban area as a geographical area that contains a large number of people in a relatively small area. In other words, an urban area has a population density that is high relative to the density of the surrounding area. This definition accommodates urban areas of vastly different...

 WHAT IS URBAN ECONOMICS?The discipline of urban economics is defined by the intersection of geography and economics. Economics explores the choices people make when resources are limited. Households make choices to maximize their utility, while firms maximize their profit. Geographers study how things are arranged across...