IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

An Urban Economic Model Of Ilegal Settlements In Flood Prone Areas In Palangkaraya City, Indonesia -A Partial Equilibrium Analysis-

  • Indrawan PERMANA


    (Graduate School of Environmental and Life Science Engineering Toyohashi University of Technology)

  • Yuzuru MIYATA

    (Graduate School of Architecture and Civil Engineering Toyohashi University of Technology Author-Email:

Registered author(s):

    This paper presents a theoretical study regarding occupations of flood prone areas by illegal settlements in urban area of Palangkaraya city, Central Kalimantan province, Indonesia. Such unusual urban land use pattern has been observed in many urbanized cities particularly in developing countries. However, scientific explanations about the urban phenomena were not formulated yet as well as literatures on that topic are quite rare. We developed a partial equilibrium model employing bid rent approach to analyze such unusual urban land use pattern. The model incorporated flood damage rate corresponding to household`s assets introducing variants of bid rent function and bid max lot size function. Differently from other traditional urban economics models, our model depicts a reverse conclusion of land allocation particularly in flood prone areas. In the flood prone areas, the bid rent of representative low income households gets higher than that by the representative high income households hence as a result the flood prone areas are settled by low income households emerging colonies of illegal settlements within city areas.

    If 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.

    File URL:
    Download Restriction: no

    Article provided by Hellenic Association of Regional Scientists in its journal Regional Science Inquiry.

    Volume (Year): IV (2012)
    Issue (Month): 1 (June)
    Pages: 29-38

    in new window

    Handle: RePEc:hrs:journl:v:iv:y:2012:i:1:p:29-38
    Contact details of provider:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:hrs:journl:v:iv:y:2012:i:1:p:29-38. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dimitrios K. Kouzas)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.