Not available in 2020/21
GY400      Half Unit
The Economics of Urbanisation

This information is for the 2020/21 session.

Teacher responsible

Prof John Henderson Stc.506b


This course is available on the MPA in International Development, MPA in Public Policy and Management, MPA in Public and Economic Policy, MPA in Public and Social Policy, MPA in Social Impact, MPhil/PhD in Economic Geography, MSc in Environment and Development, MSc in Environmental Economics and Climate Change, MSc in Local Economic Development, MSc in Regional And Urban Planning Studies, MSc in Urban Policy (LSE and Sciences Po) and MSc in Urbanisation and Development. This course is available as an outside option to students on other programmes where regulations permit.


No specific LSE course requirements. At a minimum, students must have an analytical 1 unit course in intermediate micro economics (or equivalent) and a basic statistics or econometrics course. A more advanced econometrics course would be very helpful.

Course content

This MSc course will offer students the opportunity to learn some of the conceptual foundations and empirical regularities involved in studying why countries urbanise, the nature of structural and spatial transformation involved in the urbanisation process and the development of systems of cities. Complementing this will be a study of the internal spatial transformation of cities, the evolution of the location of production activities, the formation and role of slums, and the evolution of land market regulations and property right assignments. Critical to understanding these processes will be learning about the role of regulation and political processes, as well as policy initiatives, in shaping outcomes. The course will also examine the current process of urbanisation in Asia and Africa in the various special contexts of different regions and countries, drawing from lessons of the past as experienced in Latin America and parts of the developed world.


20 hours of lectures and 20 hours of seminars in the LT.

The first two weeks of seminars will involve a review of basic statistical methods to help prepare students for class and lecture material.

Formative coursework

Students will be expected to produce 1 piece of coursework in the LT.

Indicative reading

Duranton G. (2008), 'Viewpoint: From cities to productivity and growth in developing countries', Canadian Journal of Economics, Vol. 41, No. 3, 689-736

Ghani E, S. O’Connell and E. Rossi-Hansberg (2014) 'The Spatial Development of India,' Journal of Regional Science, forthcoming

Henderson, J.V. T. Regan, and A. J. Venables (2017) “Building the city: urban transition and institutional frictions,” SERC and CERP working paper

Bertaud A and J Brueckner (2005) 'Analyzing building height restrictions: predicted impacts and welfare costs' Regional Science and Urban Economics, 35, 109-125

Donaldson D, (2017) 'Railroads of the Raj' American Economic Review, forthcoming 

Galiani S. and E. Schargrodsky (2011), 'The dynamics of land titling regularization and market development', United Nations University – World Institute for Development Economic Research, Working Paper No. 2011/88.


Exam (70%, duration: 2 hours) in the summer exam period.
Presentation (30%) in the LT.

Student performance results

(2016/17 - 2018/19 combined)

Classification % of students
Distinction 59.5
Merit 32.4
Pass 5.4
Fail 2.7

Important information in response to COVID-19

Please note that during 2020/21 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the situation of students in attendance on campus and those studying online during the early part of the academic year. For assessment, this may involve changes to mode of delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.

Key facts

Department: Geography & Environment

Total students 2019/20: 8

Average class size 2019/20: 9

Controlled access 2019/20: Yes

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Team working
  • Problem solving
  • Application of information skills
  • Communication
  • Application of numeracy skills