We analyze land use regulations in cities with traffic congestion and production spillovers. Land is allocated between residential and industrial uses inside the city boundary or between urban and rural uses at the city boundary. The production is dispersed over the city, and people and firms...

Households in real cities are heterogeneous regarding their size and composition. This implies that the household structure - i.e. the (average) household size, the composition, the relative share of different household types, and the number of households - differs across cities. This aspect is...