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Introduction J. M. Huriot and J. F. Thisse Part I. Cities and Agglomeration: 1. The formation of economics agglomerations - old problems and new perspectives M. Fujita, J. F. Thisse 2. Urban economics in retrospect: continuity or change? C. Baumont, J. M. Huriot Part II. Urban Systems: 3. City systems: general equilibrium approaches H. M. Abdel-Rahman 4. Intra-industry specialization and urban development R. Becker, J. V. Henderson, Thomas Gehrig 5. A monopolistic competition model of urban systems and trade M. Fujita, P. Krugman 6. Dynamic evolution of the US city size distribution Linda Harris Dobkins, Yannis M. Ioannides Part III. Urbanization and Growth: 7. Urban growth models with durable housing: an overview J. Brueckner 8. Urbanization, urban structure and growth G. Duranton 9. Urban spread beyond the edge of the city F. Goffette-Nagot Part IV. Cities and Factor Markets: 10. Unemployment in cities Y. Zenou 11. Rural vs. urban location: the spatial division of labour Hubert Jayet 12. Cities and the geography of financial centers Thomas Gegrig.