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Urban Systems: Market and Efficiency

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  • Pines, David
  • Thisse, Jacques Francois

Abstract

The supply of local public goods would obey principles that are not fundamentally different from those governing the efficient supply of differentiated goods. All these results rest on the assumption of an efficient land market. This suggests that the problem of land property rights should receive more attention than it does nowadays. However, the conditions for a competitive market for cities to work might be hard to achieve. First, the instrument menu available to developers is likely to be constrained. Second, nonreplicability and indivisibility may give rise to additional difficulties. In either case, the market would fail to sustain the optimum for reasons which are not always well understood.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 3 (2001)
Issue (Month): 1 ()
Pages: 7-14

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Handle: RePEc:bla:jpbect:v:3:y:2001:i:1:p:7-14

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Cited by:
  1. Bernardo Alves Furtado & Ricardo Machado Ruiz, 2006. "Metrópole Fractal: Um Modelo Com Autômatos Celulares Para Análise Do Espaço Urbano," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 73, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  2. Hadar, Yossi & Pines, David, 2004. "Population growth and its distribution between cities: positive and normative aspects," Regional Science and Urban Economics, Elsevier, vol. 34(2), pages 125-154, March.

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