ing, are capable of exerting significant impacts on location decisions.
While urban economics is concerned with the location patterns of households, firms, and other entities which locate in densely developed areas, it also encompasses such considerations as (1) how the patterns of location evolve and change, (2) how the patterns of location are affected by government expenditures, taxes, and regulations such as zoning, and (3) how the patterns of location affect the economic performance of both firms and households. Within this context, zoning and infrastructure development are also related. One hypothesis holds that local zoning policies tend to respond to market forces. Thus, zoning decisions (within the context of this hypothesis) are related to various features of the transportation system and utility systems--infrastructure and infrastructure development. Infrastructure is defined as the set of physical systems that support human habitation and economic activity within a given geographic area. Infrastructure systems may be categorized as (1) buildings required to house various activities and services, (2) public works and utilities required for the support of various activities and services, and (3) land required for the accommodation of the various buildings, public works, and utilities which are components of an area's infrastructure.
The composition of the population of any given community is a significant factor in the determination of the mix of the publicly provided goods in that community. Conversely, government may develop a specific mix of publicly provided goods with an intention of attracting and manipulating a population mix for an area. Road improvements, as an example, may make it possible for more people to locate in a specific area, because access between that area and major job location centers is facilitated by the improved roads. By financing road improvements...