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Reply to the alternative optimal growth controls


Author Info

  • Fu-Chuan Lai

    (Department of Economics, National Taipei University, Taipei, Taiwan)

  • Shu-Tsung Yang

    (Taiwan Institute of Economic Research, Taipei, Taiwan)

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    Sasaki (2002) argues that: (1) "the agglomeration effect in the (Lai and Yang 2002, (L-Y)) paper is different from the introduction of urban production in Sasaki (1998)"; and (2) the "treatment of public good in the (L-Y) paper is strange," because the public good provided by owner-residents is only consumed by renter-residents. This reply shows that (1) the agglomeration effect in the L-Y model catches the key results of urban production presented in Sasaki's model; and (2) both renter and owner-residents consuming the public good have been developed in this reply. However, the major conclusions of the L-Y model are still hold.

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    Bibliographic Info

    Article provided by Springer in its journal The Annals of Regional Science.

    Volume (Year): 36 (2002)
    Issue (Month): 2 ()
    Pages: 241-245

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    Handle: RePEc:spr:anresc:v:36:y:2002:i:2:p:241-245

    Note: Received: February 2001/Accepted: September 2001
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