• Urban economists study issues related to the growth and development of cities.cities image by Dancer01 from Fotolia.com
  
  The field of urban economics represents a specialty within the larger disciplines of economics and urban studies. Urban economics applies the tools and theories of economics to study issues affecting cities and urban life. Topics studied by urban economists include urban development and land use, real estate markets, urban transportation and local government finance, as well as various public policy issues affecting city life.
  
  

Land Use

• Economists study how societies allocate scarce resources, such as land, labor and capital. How cities use available land is of particular interest to urban economists. Urban economists Richard Arnott and Daniel McMillen, in their book "A Companion to Urban Economics," point out that issues related to urban growth and land use, such as population density, residential and commercial lot sizes, and zoning regulations vary across cities. Some cities have thriving central business areas that even include high-rise residences, while others have high vacancy rates. Some cities have separate commercial and residential areas, while the two blend in other cities. Urban economists study the differing patterns of land use and try to identify factors that explain these differences.
  
  

Real Estate Markets

• Land use and urban development issues represent the "macro" approach to urban economics, studying urban issues from a broader, economywide perspective. Urban economists studying real estate issues employ a "micro" approach, examining issues related specifically to residential and commercial real estate. These economists look at economic growth, taxes and city government policies, and their effects on the availability of housing and commercial property. Arnott and McMillen say that many real estate economists study issues such as the demand for housing, factors affecting real estate prices and discrimination in mortgage lending. Many universities' urban economics programs emphasize real estate studies.
  
  

Urban Transportation

• Traffic congestion that results in lengthy commute times and higher levels of air pollution negatively impacts the quality of life in cities. To reduce crowded roads and enhance quality of life, many city governments introduce mass transit systems such as bus and rail systems. Urban transportation represents another important topic in urban economics. Urban economists often analyze city transit systems, weighing the costs against the expected benefits, such as less pollution and reduced traffic problems.