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Estimation of Optimal Metropolitan Size in Japan with Consideration of Social Costs

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Author Info

  • Fumitoshi Mizutani

    (Graduate School of Business Administration, Kobe University)

  • Tomoyasu Tanaka

    (Kinki University, Faculty of Business Administration)

  • Noriyoshi Nakayama

    (Nagoya City University, Graduate School of Economics)

Abstract

The main purpose of this study is to estimate the optimal city size which would attain maximum total surplus and sustainability, or a city size in which total benefits would equal total costs. We apply regressions to the total benefit function and the total cost function for 269 employment metropolitan areas for the year 2000 in Japan. Our study can be distinguished from others in that we include in total costs such social costs as environmental pollution. Our findings are that the optimal city size is 393,151 persons. The sustainable limit for city size is 1,057,412.

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File URL: http://www.b.kobe-u.ac.jp/paper/2012_19.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by Kobe University, Graduate School of Business Administration in its series Discussion Papers with number 2012-19.

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Length: 22 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:kbb:dpaper:2012-19

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Related research

Keywords: Optimal City Size; Total Surplus; Environmental Costs; Social Costs;

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  1. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
  2. Arnott, Richard, 1979. "Optimal city size in a spatial economy," Journal of Urban Economics, Elsevier, vol. 6(1), pages 65-89, January.
  3. Henderson, J V, 1974. "Optimum City Size: The External Diseconomy Question," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 373-88, Part I, M.
  4. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-56, September.
  5. Small, K.A. & Kazimi, C., 1994. "On the Costs of Air Pollution from Motor Vehicules," Papers 94-95-3, California Irvine - School of Social Sciences.
  6. Fumitoshi Mizutani & Yusuke Suzuki & Hiroki Sakai, 2011. "Estimation of Social Costs of Transport in Japan," Urban Studies, Urban Studies Journal Limited, vol. 48(16), pages 3537-3559, December.
  7. Kanemoto, Yoshitsugu & Ohkawara, Toru & Suzuki, Tsutomu, 1996. "Agglomeration Economies and a Test for Optimal City Sizes in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 10(4), pages 379-398, December.
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