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21 Examples of City Economics

City economics is the study of the local economies of urban environments. This includes the efficiencies and inefficiencies created by urban environments and factors such as institutions, infrastructure, quality of life and industries that help a city to thrive or cause it to go into decline. The following are common examples of city economics.
Anchor institutions
Large institutions that greatly contribute to the local economy such as a university that creates jobs, quality of life and a pool of talent.
Business clusters
A tendency for an industry to center in one area.
Capital flight
The outflow of capital, firms and institutions from a place due to factors such as political instability, excessive taxation, regulations or low quality of life.
Creative economy
An economic base of creative industries such as film studios.
Cultural industries
Highly desirable economic activity based on culture such as a theatre district or art museum.
Diseconomies of agglomeration
Inefficiencies of dense urban environments such as traffic jams.
Economic base theory
The idea that a city can thrive based on one large industry.
Economics of crime
The study of how crime rates influence urban economics.
Economies of agglomeration
The efficiencies of dense urban environments such as proximity to the things that you need and access to large markets.
Economies of density
Things are more efficient when they are relatively close together. For example, it may be possible to make deliveries far faster in a city as distribution centers can be close to customers.
Economies of scale
Cites allow businesses to access large markets and scale their business with ample labor.
Economies of scope
The efficiencies gained with variety. For example, a downtown shopping district where you can buy a great variety of goods within a single trip.
Foreign direct investment
Attracting capital into a city on a global basis. Tends to make a city thrive but may displace locals.
A neighborhood that becomes popular resulting in an influx of wealth and investment and increasing costs for existing residents who may be forced out.
Global city
A city that attracts institutions, investment and the headquarters of large firms on a global basis.
Happiness economics
The prediction that a high quality of life creates a thriving local economy and not the other way around.
Knowledge economy
An economic base related to knowledge work such as software development or finance.
Livable cities
The self-reported life satisfaction of the residents of a city. Helps institutions and organizations to attract top talent.
Public infrastructure development
Efficiencies to business and improvements to quality of life based on hard infrastructure such as bridges and soft infrastructure such as schools.
Sustainable urban development
The pursuit of win-win economic development that both improves the local economy and its livability. This could be contrasted with sacrificing things such as air quality in return for more jobs.
Transit-oriented development
The theory that transportation shapes a city and it's economy.

City Economics

This is the complete list of articles we have written about city economics.
Business Cluster
Business Clusters
City Branding
City Economics
City Services
Curse Of First
Economic Growth
Economic Outcomes
Economic Security
Fashion Capital
Food Sovereignty
Happiness Index
Land Use
Night Economy
Quality Of Life
World Cities
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City Services

An a-z list of common city services.

Land Use

An overview of land use with examples.

Unemployment Types

The common types of unemployment.

World Cities

A list of world cities.

Economic Outcomes

A list of common economic outcomes.


A list of city characteristics that add to quality of life.

City Types

An list of the common types of city.

Infrastructure Examples

An overview of infrastructure with examples.

Air Pollution

An overview of air pollution with examples.

Community Development

The definition of community development with examples.


The definition of vehicle with examples.

Social Space

An overview of social spaces with examples.

Public Goods

An overview of public goods with a list of examples.

Human Development

An overview of human development with examples.
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