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Your response will compare the neoclassical treatment of the economic phenomenon identified in the text (Chapters 1-11), with the historical facts of how urban space has been allocated in the United States. Be sure to consider the following questions:
- Do the theoretical models used in the OSullivan text adequately explain the phenomenon in question?
- What are the consequences of abstracting away from history within the economic theory?
- Should neoclassical theory be amended in order to take account of historical events? How would this impact the kinds of phenomenon economists attempt to explain?
- How would adding historical facts alter the economists policy recommendations?
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