A Simple Theory of Smart Growth and Sprawl
AbstractThis paper considers the simultaneous determination of residential density and the supply of local versus remote retail services. Possible equilibrium development patterns either correspond closely to what anti-sprawl activists describe as smart growth, or to its opposite. Equilibrium and optimal patterns of development do not always coincide. When equilibrium and optimal patterns of development diverge, optimal density is always discretely (as opposed to marginally) higher than equilibrium density. This occurs in the absence of congestion externalities, and is due to a free-rider problem and a coordination problem. The analysis indicates that a tax on large lots or a subsidy for small lots may be welfare improving under certain conditions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-208.
Length: 24 pages
Date of creation: 31 Mar 2006
Date of revision:
Contact details of provider:
Postal: 150 St. George Street, Toronto, Ontario
Phone: (416) 978-5283
urban sprawl; residential land use; lot size; retail location; urban economics;
Other versions of this item:
- R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
- H0 - Public Economics - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-11 (All new papers)
- NEP-GEO-2006-03-11 (Economic Geography)
- NEP-PBE-2006-03-11 (Public Economics)
- NEP-URE-2006-03-11 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marcus Berliant & Hideo Konishi, 2000.
"The Endogenous Formation of a City: Population Agglomeration and Marketplaces in a Location-Specific Production Economy,"
Boston College Working Papers in Economics
451, Boston College Department of Economics.
- Berliant, Marcus & Konishi, Hideo, 2000. "The endogenous formation of a city: population agglomeration and marketplaces in a location-specific production economy," Regional Science and Urban Economics, Elsevier, vol. 30(3), pages 289-324, May.
- Harrison, David Jr. & Kain, John F., 1974. "Cumulative urban growth and urban density functions," Journal of Urban Economics, Elsevier, vol. 1(1), pages 61-98, January.
- Marcy Burchfield & Henry G. Overman & Diego Puga & Matthew A. Turner, 2006.
"Causes of Sprawl: A Portrait from Space,"
The Quarterly Journal of Economics,
MIT Press, vol. 121(2), pages 587-633, May.
- Giles Duranton & Diego Puga, 2003.
"Micro-Foundations of Urban Agglomeration Economies,"
NBER Working Papers
9931, National Bureau of Economic Research, Inc.
- Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117 Elsevier.
- Berliant, M. & Fujita, M., 1990.
"Alonso'S Discrete Population Model Of Land Use: Efficient Allocations And Competitive Equilibria,"
RCER Working Papers
217, University of Rochester - Center for Economic Research (RCER).
- Berliant, Marcus & Fujita, Masahisa, 1992. "Alonso's Discrete Population Model of Land Use: Efficient Allocations and Competitive Equilibria," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 535-66, August.
- Brueckner, Jan K., 1987. "The structure of urban equilibria: A unified treatment of the muth-mills model," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 20, pages 821-845 Elsevier.
- Berg, Nathan, 2008. "Imitation in location choice," MPRA Paper 26592, University Library of Munich, Germany.
- Lambert, Thomas & Catchen, James, 2013. "The Impact of Urban Sprawl on Disaster Relief Spending: An Exploratory Study," MPRA Paper 51887, University Library of Munich, Germany.
- Caviglia-Harris, Jill L. & Harris, Daniel, 2011. "The Impact of Settlement Design on Tropical Deforestation Rates and Resulting Land Cover Patterns," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(3), December.
- Daniel Czamanski & Rafael Roth, 2011. "Characteristic time, developers’ behavior and leapfrogging dynamics of high-rise buildings," The Annals of Regional Science, Springer, vol. 46(1), pages 101-118, February.
- Daniel Arribas-Bel & Peter Nijkamp & Henk Scholten, 2011. "Multi-Dimensional Urban Sprawl in Europe: a Self-Organizing Map Approach," ERSA conference papers ersa10p485, European Regional Science Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RePEc Maintainer).
If references are entirely missing, you can add them using this form.