Abstract
Three economic theories or modeling frameworks have played a significant role in the modern development of theoretical economics. They are the neoclassical growth theory (Burmeister and Dobell, 1970), the urban location theory (e.g., Alonso, 1964, Palma and Papageorgiou, 1988, Scotcmer and Thisse, 1992), and the family economics (Becker, 1976, 1981). Although the neoclassical growth theory has been applied and extended to explain issues about urban and regional growth and development (e.g., Henderson, 1985, Miyao, 1981), there are only a few theoretical efforts which introduce spatial aspects such as residential structures of cities and regions into the neoclassical growth theory. The previous chapters tried to synthesize the main ideas in the urban economics and neoclassical growth theory within a compact framework.
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