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Urban economics

Urban economics studies why cities exist, why some grow and others do not, and how land, housing and transport prices form within them. Its central idea is agglomeration: bringing people and firms together produces advantages —markets, ideas, suppliers— that outweigh the cost of congestion.

From the location theories of von Thünen and Alonso to Krugman's new economic geography, the discipline explains the city as a balance between access and space. Edward Glaeser popularised it with Triumph of the City (2011); his critics point out that agglomeration also concentrates inequality.

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