The process of economic development is generally associated with increasing urbanization. Urbanization, with its increasing concentration of population and production, puts particular pressure on markets to allocate resources for provision of land, housing, transportation, labor and public goods. Despite these problems, urbanization can alter the productivity of land, labor, and capital in ways that can improve the welfare of residents and the performance of the broader economy. This seminar will focus on the economic basis for these phenomena, and their implications for public policy. We will begin with an overview of the process of urbanization and urban growth. We will then concentrate on particular markets within urban areas that determine the use and allocation of land, housing, transportation and labor. Particular studies and examples will be discussed that examine these markets in the context of developing and transition economies. Finally, we will turn to the variety of public policy responses that have been devised and the extent to which these policies mitigate or exacerbate the problems of urbanization. Active participation in the seminar will be expected. Format: seminar. Requirements: two midterms and a paper. Prerequisites: Economics 251 and 252. Undergraduate enrollment limited and only accepted with instructor's permission.