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Urban Systems: Market and Efficiency

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Author Info
Pines, D.
Thisse, J.-F.

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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.

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Publisher Info
Paper provided by Tel Aviv in its series Papers with number 2000-22.

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Length: 14 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:teavfo:2000-22

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Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.
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Related research
Keywords: SUPPLY ; PUBLIC SECTOR ; GOODS ; MARKET ; GOVERNMENT;

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Find related papers by JEL classification:
R0 - Urban, Rural, and Regional Economics - - General
H1 - Public Economics - - Structure and Scope of Government
H7 - Public Economics - - State and Local Government; Intergovernmental Relations

Cited by:
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  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]. [Downloadable!]
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This page was last updated on 2009-12-16.


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