Introduction to Urban Economics by Douglas M. Brown download in pdf, ePub, iPad
The location decisions of both firms and households create cities that differ in size and economic structure. If a firm locates in a geographically isolated region, their market performance will be different than a firm located in a concentrated region. The nature and behavior of markets depends somewhat on their locations therefore market performance partly depends on geography. Because housing is immobile, when a household chooses a dwelling, it is also choosing a location.
There are however problems encountered in making this analysis such as funding, uncertainty, space, etc. In attempts to explain observed patterns of land use, the urban economist examines the intra-city location choices of firms and households.
In analyzing housing policies, we make use of market structures e.
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