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This course develops a framework to analyze how cities operate and how to improve them. The first part of the course addresses basic questions about cities: Why do cities exist? What makes some cities more costly than others? What determines housing prices? The second part of the course examines specialized topics including residential segregation, economic development programs, and suburbanization. Prerequisites: 440.601 Microeconomic Theory. Corequisite: 440.606 Econometrics.