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AI2155 Urban Economics and Cost Benefit Analysis 7.5 credits

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Headings with content from the Course syllabus AI2155 (Spring 2020–) are denoted with an asterisk ( )

Content and learning outcomes

Course contents

Market forces in the development of cities; land rent, land use/control; urban problems such as traffic congestion; cost benefit analysis.

Intended learning outcomes

The aim of the course is to provide students a deep understanding of spatial economic theories and urban issues. Upon completion of the course, course participant should be able to:

  • Describe and analyze the economic factors behind the existence, evolution, and growth of cities.

  • Analyze and interpret quantitative data about urban growth and economic base models.

  • Apply location theories that explain how land prices and zoning regulations influence the location of various economic activities and housing markets.

  • Explain the economic causes and consequences of key urban challenges such as congestion, segregation, etc. and the policy responses to those challenges.

  • Describe the role of local government in providing public goods and household’s choices of amenities in relation to taxes.

  • Explain CBA concept and the assumptions behind it as well as limitations.

Course disposition

No information inserted

Literature and preparations

Specific prerequisites

Eligibility to the master programme in Real Estate and Construction Management.

Recommended prerequisites

No information inserted


No information inserted


O'Sullivan A, Urban Economics, McGraw-Hill, Latest edition.

Examination and completion

If the course is discontinued, students may request to be examined during the following two academic years.

Grading scale

A, B, C, D, E, FX, F


  • TEN1 - Written Exam, 4.5 credits, grading scale: A, B, C, D, E, FX, F
  • ÖVN1 - Assignments, 3.0 credits, grading scale: P, F

Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.

The examiner may apply another examination format when re-examining individual students.

Other requirements for final grade

Course work consists of a termpaper and a series of exercises. In order to pass the course students need to have the termpaper approved, in addition to passing the final written exam.

Opportunity to complete the requirements via supplementary examination

No information inserted

Opportunity to raise an approved grade via renewed examination

No information inserted


Ethical approach

  • All members of a group are responsible for the group's work.
  • In any assessment, every student shall honestly disclose any help received and sources used.
  • In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.

Further information

Course web

Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.

Course web AI2155

Offered by

Main field of study

Built Environment

Education cycle

Second cycle

Add-on studies

No information inserted


Abukar Warsame, 08-790 6912,