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Evolutionary implementation of optimal city size distributions

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  • Fujishima, Shota

Abstract

We consider the problem of implementing optimal city size distributions. The planner would like to design a policy under which an optimum is achieved in the long-run from any initial state with neither direct population control nor knowledge of preferences. We show that the planner can lead an economy to an optimum by internalizing the externalities evaluated at current prices and the current population distribution in each period. Although there are generally nonoptimal equilibria under such a policy, these are not stable because people adjust their location decisions with forward-looking expectations.

Suggested Citation

  • Fujishima, Shota, 2013. "Evolutionary implementation of optimal city size distributions," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 404-410.
  • Handle: RePEc:eee:regeco:v:43:y:2013:i:2:p:404-410
    DOI: 10.1016/j.regsciurbeco.2012.10.002
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Watanabe, Hiroki, 2015. "A Spatial Production Economy Explains Zipf’s Law for Gross Metropolitan Product," MPRA Paper 72907, University Library of Munich, Germany.
    2. Akamatsu, Takashi & Fujishima, Shota & Takayama, Yuki, 2014. "On Stable Equilibria in Discrete-Space Social Interaction Models," MPRA Paper 55938, University Library of Munich, Germany.
    3. repec:bla:ijethy:v:13:y:2017:i:1:p:147-162 is not listed on IDEAS
    4. Akamatsu, Takashi & Fujishima, Shota & Takayama, Yuki, 2017. "Discrete-space agglomeration model with social interactions: Multiplicity, stability, and continuous limit of equilibria," Journal of Mathematical Economics, Elsevier, vol. 69(C), pages 22-37.
    5. Hiroki Watanabe, 2016. "Let Tiebout pick up the tab: Pricing out externalities with free mobility," ERSA conference papers ersa16p134, European Regional Science Association.
    6. repec:bla:manchs:v:85:y:2017:i:6:p:744-764 is not listed on IDEAS

    More about this item

    Keywords

    System of cities; Externalities; Implementation; Perfect foresight dynamic; Potential game; Evolutionary game theory;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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