The paper examines decisions by individuals and firms in the presence of social interactions and then turns to cities as the units of analysis. The city-based analysis shows the critical role of intercity trade and its impact on urban sectoral and functional specialization. The paper also examines long-run economic growth in economies made up of cities and Zipf's law in that context. The paper ... read moresynthesizes key aspects of the social interactions literature with Ioannides (2013) as a background, taking off from key concepts, as presented there and drawing attention to key recent contributions by other researchers.read less
