This course explores the economic foundations of cities and local governments. It integrates urban economics, real estate markets, and the fiscal mechanisms that shape local governance. Students will examine why cities form and grow, how land and housing markets function, and how public finance instruments like taxation, zoning, and public spending influence urban outcomes. Emphasis will be placed on workhorse models in Urban Economics (e.g., Rosen-Roback spatial equilibrium, Alonso-Muth-Mills, Tiebout sorting etc.), state-of-the-art empirical methods, and policy debates in both developed and developing country contexts. Students will engage with data, case studies, and analytical tools to critically evaluate the challenges of urbanization, housing affordability, and local public goods and service provision.