Article Abstract:
An optimizing model of urban land development that presents the formation and growth processes of subcenters is described. This analysis can help in the formulation of an appropriate urban policy for the decentralization of industrial activities and development of subcenters. The framework identifies the location of new firms and households, thereby optimizing the net rental revenue from land over the planning timeframe. Simulation is used to examine the conditions on parameter values for which subcenters can be developed. It is found that the optimal location of the fringes of other business districts shifts away from a city center when commuting cost, firm size or lot size increases. However, an alternative model suggests that varying specifications of agglomeration economies and communication costs generate different dynamic patterns of land use and different optimal locations of a subcenter.
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Article Abstract:
An alternative vintage model of an urban housing market is presented, with the purpose of providing an improved representation of urban dynamics. Traditional urban vintage models have focused on the supply side of housing, largely ignoring urban dynamics. The new model uses over-time bid-rent to demonstrate the behavior of the demand for housing as a durable good. Households can use over-time bid-rent to influence the calculation of the life span of housing units.
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Article Abstract:
A model that accounts for urban and rural sectors is necessary for evaluating micro effects of industrial policies on urban space. Parameter change in this model affects land rent indeterminately.
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