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In her book The Economy of Cities, Jane Jacobs makes the controversial claim that city-formation preceded the birth of agriculture. Jacobs does not lend her theory to any strict definition of a city, but her account suggestively contrasts what could only be thought of as primitive city-like activity to the activity occurring in neighboring hunter-gatherer settlements. To argue this view, Jacobs suggests a fictitious scenario where a valued natural resource leads to primitive economic activity—in her example, the resource is obsidian. The stock of obsidian is controlled and traded with neighboring hunting groups. Hunters who do not control the stock travel great distances to barter what they have, valuing obsidian because it "makes the sharpest tools to be had" This activity brings more people to the center as jobs are created and goods are being traded. Among the goods traded are seeds of all different sorts, stored in unprecedented combinations. In various ways, some accidental, the seeds are sown, and the variation in yields are observed more readily than they would be in the wild. The seeds that yield the most grain are noticed and trading them begins to occur within the city. Owing to this local dealing, the city dwellers find that their grain yields are the best, and for the first time make deliberate and conscious selection. The choices made now are purposeful, and they are made among various strains of already cultivated crosses, and their crosses, mutants and hybrids
Towns and cities have a long history, although opinions vary on whether any particular ancient settlement can be considered to be a city. A city formed as central places of trade for the benefit of the members living in close proximity to others facilitates interaction of all kinds. These interactions generate both positive and negative externalities between others' actions. Benefits include reduced transport costs, exchange of ideas, sharing of natural resources, large local markets, and later in their development, amenities such as running water and sewage disposal. Possible costs would include higher rate of crime, higher mortality rates, higher cost of living, worse pollution, traffic and high commuting times. Cities will grow when the benefits of proximity between people and firms are higher than the cost.The first true towns are sometimes considered to be large settlements where the inhabitants were no longer simply farmers of the surrounding area, but began to take on specialized occupations, and where trade, food storage and power was centralized. In 1950 Gordon Childe attempted to define a historic city with 10 general metrics.
