INTRODUCTION
This course is an introduction into urban and regional economics. Economic activity is unevenly spread over space: Densely populated metropolitan areas in highly industrialized regions coexist alongside small villages in underdeveloped regions. Cities are the centers of production and urban live. At the same time, cities are associated with social tensions, crime, pollution, and congestion. The first part of this course shows how scale economies and consumer externalities can explain the emergence of cities. These economic forces also help to understand the internal structure of cities and the corresponding spatial pattern of land rents and housing prices. The second part studies the role of the government and its impact on residential segregation. We will discuss the impact of zoning laws, rent control and the local provision of public goods on the location choice of households and firms. The third part introduces the "New Economic Geography" and studies how agglomeration and dispersion forces lead to a pattern of central and peripheral regions. We then analyze the effects of tax competition across regions as well as the effectiveness of regional policies. The highly stylized theoretical models developed in this course will be contrasted with empirical evidence from Europe and Spain.

I. THE ECONOMIC THEORY OF THE CITY

Tema 1
Why do cities exist?. Production and consumption externalities.
Bibliografia
GLAESER, E. L.; KALLAL, H. D.; SCHEINKMAN, J. A.; SHLEIFER, A. “Growth in Cities”. Journal of Political Economy, 100. 1992. Pàg. 1126-1152.
GLAESER, E. L.; KOLKO, J.; SAIZ, A. “Consumer City”. Journal of Economic Geography, 1. 2001. Pàg. 27-50.
JAFFE, A.; TRAJTENBERG, M.; HENDERSON, R. “Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations”. Quarterly Journal of Economics, 108. 1993. Pàg. 577-598.
O'SULLIVAN, Arthur. Urban Economics. 5a. ed. McGraw-Hill, 2003. Cap. 2, 3 (i 4).
ROSENTHAL, S.; STRANGE, W. “Evidence on the Nature and Sources of Agglomeration Economies”. A: HENDERSON, V.; THISSE, J.-F. (ed.). Handbook of Regional and Urban Economics. Vol. 4. North-Holland, 2004. Cap. 49.

Tema 2
Urban land use and land rents: The monocentric city model.
Bibliografia
FUJITA, Masahisa. Urban Economic Theory. 1989. Cap. 2 i 3.
O'SULLIVAN, Arthur. Urban Economics. 5a. ed. McGraw-Hill, 2003. Cap. 7 i 8.
VON THÜNEN, J. H. Der Isolierte Staat in Beziehung auf Landschaft und Nationalökonomie. Hamburg, 1826. [English translation: WARTENBERG, Carla M. Von Thünen's Isolated State. Oxford: Pergamon Press, 1966].

Tema 3
Urban land use and land rents: Multicentric and edge cities.
Bibliografia
ANAS, Alex; ARNOTT, Richard; SMALL, Kenneth A. “Urban Spatial Structure”. Journal of Economic Literature, 36. 1998. Pàg. 1426-1464.
HENDERSON, J. V.; MITRA, A. “The new urban landscape: Developers and Edge cities”. Regional Science and Urban Economics, 26. 1996. Pàg. 613-643.
LANG, Robert E. “Office Sprawl: The Evolving Geography of Business”. The Brookings Institution Survey Series. 2000.
McDONALD, J.; PRATHER, P. “Suburban Employment Centres: The Case of Chicago”. Urban Studies, 31. 1994. Pàg. 201-218.
O'SULLIVAN, Arthur. Urban Economics. 5a. ed. McGraw-Hill, 2003. Cap. 9.

Tema 4
Systems of cities and urban evolution.
Bibliografia
GABAIX, Xavier; IOANNIDES, Yannis. “The Evolution of City Size Distributions”. A: HENDERSON, V.; THISSE, J.-F. (ed.). Handbook of Regional and Urban Economics. Vol. 4. North-Holland, 2004. Cap. 53.
O'SULLIVAN, Arthur. Urban Economics. 5a. ed. McGraw-Hill, 2003. Cap. 5.
ROSEN, K.; RESNICK, M. “The Size Distribution of Cities: an Examination of the Pareto Law and Primacy”. Journal of Urban Economics, 8. 1980. Pàg. 165-186.

II. SEGREGATION AND THE ROLE OF THE GOVERNMENT

Tema 5
Land use control and zoning.
Bibliografia
GLAESER, E. L.; GYOURKO, J. “The Impact of Building Restrictions on Housing Affordability”. Wharton Real Estate Review, 7. 2003. Pàg. 5-14.
O'SULLIVAN, Arthur. Urban Economics. 5a. ed. McGraw-Hill, 2003. Cap. 10.
POGOZINSKI, J.; SASS, T. “Measuring the Effects of Municipal Zoning Regulations: A Survey”. Urban Studies, 28. 1991. Pàg. 597-621.

Tema 6
Public transport and traffic congestion.
Bibliografia
ARNOTT, R.; RAVE, T.; SCHÖB, R. Alleviating Urban Traffic Congestion. Cambridge: MIT Press, 2005. Cap. 1.
FUJITA, Masahisa. Urban Economic Theory. 1989. Cap. 7.4.
O'SULLIVAN, Arthur. Urban Economics. 5a. ed. McGraw-Hill, 2003. Cap. 11 i 12.

Tema 7
Urban segregation: Local public goods, local taxation and Tiebout sorting.
Bibliografia
EPPLE, Dennis; ROMER, Thomas. “Mobility and Redistribution”. Journal of Political Economy, 99. 1991. Pàg. 828-858.
OATES, Wallace E. “The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis”. Journal of Political Economy, 77. 1969. Pàg. 957-971.
O'SULLIVAN, Arthur. Urban Economics. 5a. ed. McGraw-Hill, 2003. Cap. 13 i 19 (20).
SCHMIDHEINY, Kurt. “Income Segregation and Local Progressive Taxation: Empirical Evidence from Switzerland”. Journal of Public Economics, 90. 2006. Pàg. 429-458.
TIEBOUT, Charles M. “A Pure Theory of Local Expenditures”. Journal of Political Economy, 64. 1956. Pàg. 416-424.

Tema 8
Urban segregation: Urban poverty, racial discrimination and peer group effects.
Bibliografia
BORJAS, G. “Ethnicity, Neighborhoods and Human Capital Externalities”. American Economic Review, 85. 1995. Pàg. 365-390.
CUTLER, D.; GLAESER, E. “Are Ghettos Good or Bad?”. Quarterly Journal of Economics, 112. 1997. Pàg. 827-872.
O'SULLIVAN, Arthur. Urban Economics. 5a. ed. McGraw-Hill, 2003. Cap. 14.

Bibliografia (Parts I i II)
FUJITA, Masahisa. Urban Economic Theory. 1989.
O'SULLIVAN, Arthur. Urban Economics. 5a. ed. McGraw-Hill, 2003. (We will use the 2006 6th edition if it becomes available in Europe by September).
This reading list is preliminary. The specified chapters in O'Sullivan and Fujita are compulsory while the original articles are recommended. The reading list will be augmented by current articles from the press. Lecture notes, slides and articles will be downloadable from the course homepage.

III. INTRODUCTION TO THE NEW ECONOMIC GEOGRAPHY

Tema 9
Agglomeration, dispersion forces and the core-periphery model.
Bibliografia
BALDWIN, R.; WYPLOSZ, C. Economics of European Integration. 2a. ed. McGraw-Hill Education, 2006. Cap. 10.
KRUGMAN, P. Geography and Trade. Cambridge: MIT Press, 1991. Cap. 1.

Tema 10
Economic Geography and public policy.
Bibliografia
BALDWIN, R.; WYPLOSZ, C. Economics of European Integration. 2a. ed. McGraw-Hill Education, 2006. Cap. 9.
PUGA, Diego. “European regional policy in light of recent location theories”. Journal of Economic Geography, 2. 2002. Pàg. 372-406.

Tema 11
Spatial distribution of economic activity.
Bibliografia
ELLISON, G.; GLAESER, E. “Geographic concentration in U.S. manufacturing industries: A dartboard approach”. Journal of Political Economy, 105. 1997. Pàg. 889-927.
OVERMAN, Henry; COMBES, Pierre Philippe. “The Spatial Distribution of Economic Activities in the European Union”. A: HENDERSON, V.; THISSE, J.-F. (ed.). Handbook of Regional and Urban Economics. Vol. 4. North-Holland, 2004. Cap. 64.
PUGA, Diego; OVERMAN, Henry G. “Unemployment clusters across Europe's regions and countries”. Economic Policy, 34. 2002. Pàg. 115-147.