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Modeling Recreational Amenities in an Urban Setting: Location, Congestion, and Substitution Effects

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  • Homans, Frances R.
  • Marshall, Elizabeth P.

Abstract

In this article, we introduce a recreational amenity—a greenbelt park—into a simple urban economic model. For multiple possible park placements, we solve for the associated equilibrium urban structure, including the equilibrium rent gradient, city boundary, total number of park visits, the overall utility level, and total vehicle miles traveled. We examine how these change with alternative park placement sites. We then show how two modifications of the basic model—allowing congestion at the site to affect site quality, and introducing the possibility of a substitute site at the city’s periphery—affect our conclusions about how greenbelt location influences urban structure.

Suggested Citation

  • Homans, Frances R. & Marshall, Elizabeth P., 2008. "Modeling Recreational Amenities in an Urban Setting: Location, Congestion, and Substitution Effects," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), pages 1-16.
    • Handle: RePEc:ags:arerjl:45670
    DOI: 10.22004/ag.econ.45670
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    1. Ioulia Ossokina, 2010. "Geographical range of amenity benefits: Hedonic price analysis for railway stations," CPB Discussion Paper 146, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Kuminoff, Nicolai V., 2009. "Using a Bundled Amenity Model to Estimate the Value of Cropland Open Space and Determine an Optimal Buffer Zone," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(01), pages 1-23, April.

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