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Optimal Urban Land Use and Zoning

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  • Esteban Rossi-Hansberg

    (Stanford University)

Abstract

The paper studies the optimal distribution of business and residential land in a circular city. Once the optimum is characterized, we analyze the effect of changes in commuting costs and externality parameters. We also propose policies like labor subsidies, land taxes and zoning restrictions that can implement the efficient allocation as an equilibrium, or close the gap between the optimal and equilibrium allocations. The results show that business land is more concentrated at the center of the city in the optimum and that higher commuting costs increase the difference between optimal and equilibrium allocations. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/S1094-2025(03)00056-5
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Bibliographic Info

Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 7 (2004)
Issue (Month): 1 (January)
Pages: 69-106

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Handle: RePEc:red:issued:v:7:y:2004:i:1:p:69-106

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Related research

Keywords: Land use; Spatial production externalities; Commuting costs; Zoning;

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References

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  1. Francesco Caselli & Wilbur John Coleman II, 2001. "The U.S. Structural Transformation and Regional Convergence: A Reinterpretation," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 109(3), pages 584-616, June.
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  5. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 100(6), pages 1126-52, December.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
  6. Antonio Ciccone & Giovanni Peri, 2002. "Indentifying human capital externalities: Theory with an application to US cities," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 611, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2005.
  7. Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 108(3), pages 577-98, August.
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  11. Vernon Henderson, 2001. "Marshall's Scale Economies," Working Papers, Center for Economic Studies, U.S. Census Bureau 01-17, Center for Economic Studies, U.S. Census Bureau.
  12. Robert E. Lucas, Jr., 2001. "Externalities and Cities," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 245-274, April.
  13. Wheaton, William C., 1998. "Land Use and Density in Cities with Congestion," Journal of Urban Economics, Elsevier, vol. 43(2), pages 258-272, March.
  14. Dekle, Robert & Eaton, Jonathan, 1999. "Agglomeration and Land Rents: Evidence from the Prefectures," Journal of Urban Economics, Elsevier, vol. 46(2), pages 200-214, September.
  15. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, Econometric Society, vol. 70(4), pages 1445-1476, July.
  16. Marcus Berliant & Shin-Kun Peng & Ping Wang, 2000. "Production Externalities and Urban Configuration," Vanderbilt University Department of Economics Working Papers, Vanderbilt University Department of Economics 0011, Vanderbilt University Department of Economics.
  17. Stull, William J, 1974. "Land Use and Zoning in an Urban Economy," American Economic Review, American Economic Association, American Economic Association, vol. 64(3), pages 337-47, June.
  18. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 12(2), pages 161-196, May.
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