The Organization of Cities

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This book examines the interplay between state and economy in urban development, revisiting key theoretical models that illustrate how market equilibrium influences the scale and organization of commercial cities within a mixed market economy under a liberal state. It connects various markets—factors of production, investment, transportation, and exports—showing how these interact within the urban economy and globally. Each model elucidates how underlying assumptions shape predictions about urban outcomes. By contrasting these models, the book presents an alternative view: governance and the urban economy emerge from negotiations among political actors driven by differing visions of commonwealth and personal ambition. Grounded in economic history, it traces the evolution of commercial cities and the urban economy, then delves into production factors, exports, and market dynamics, including a detailed breakdown of the Mills model into simpler components. It also introduces simplified models for real estate, fixed capital investment, transportation, and land use planning. The discussion culminates with linear programming and the Herbert-Stevens and Ripper-Varaiya models. This fresh perspective on urban economics highlights the connections between state and economy, inviting readers to reconsider established theories, making it valuable for scholars, students, and practitioners in related fields.