Urban and regional economics – in contrast to the rest of economics – places great emphasis on distance and location and the importance of spatial relationships. Urban economics focuses on the city as a centre of economic activity where productivity is increased through many firms being located close to each other and to decision makers in the public sector. But because proximity is important, distance within the cities is also important and locations within the city will differ in their economic characteristics.
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Cheshire et al. (2002) studied this question.