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Alonso's Discrete Population Model of Land Use: Efficient Allocations and Competitive Equilibria

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  • Berliant, Marcus
  • Fujita, Masahisa

Abstract

In his 1964 book, W. Alonso proposed several concepts of land-use equilibrium in terms of discrete population. However, the so-called new urban economics has been concerned exclusively with continuous population models. It is the authors' belief that in order to develop logical foundations for continuous population models, it would be useful to go back to the original models of Alonso. In this paper, they focus on the additive land price model of Alonso and examine its solution characteristics. In particular, the authors demonstrate the existence and Pareto efficiency of equilibria and the supportability of efficient allocations through additive land price systems. Copyright 1992 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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  • 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 535-566, August.
  • Handle: RePEc:ier:iecrev:v:33:y:1992:i:3:p:535-66
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    Cited by:

    1. Marcus Berliant & Thijs ten Raa, 2007. "Equilibrium And The Core In Alonso'S Discrete Population Model Of Land Use," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(1), pages 235-246, February.
    2. Berliant, Marcus, 2007. "Prospects for a unified urban general equilibrium theory," Regional Science and Urban Economics, Elsevier, vol. 37(4), pages 466-471, July.
    3. Watanabe, Hiroki, 2015. "A Spatial Production Economy Explains Zipf’s Law for Gross Metropolitan Product," MPRA Paper 72907, University Library of Munich, Germany.
    4. Berliant, Marcus & Peng, Shin-Kun & Wang, Ping, 2006. "Welfare analysis of the number and locations of local public facilities," Regional Science and Urban Economics, Elsevier, pages 207-226.
    5. Courtney LaFountain, 2008. "Core equivalence for residential land use models," International Journal of Economic Theory, The International Society for Economic Theory, vol. 4(4), pages 459-481.
    6. Turner, Matthew A., 2007. "A simple theory of smart growth and sprawl," Journal of Urban Economics, Elsevier, vol. 61(1), pages 21-44, January.
    7. Berliant, Marcus & Sabarwal, Tarun, 2008. "When worlds collide: Different comparative static predictions of continuous and discrete agent models with land," Regional Science and Urban Economics, Elsevier, vol. 38(5), pages 438-444, September.
    8. Berliant, Marcus & Yu, Chia-Ming, 2013. "Rational expectations in urban economics," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 197-208.
    9. Berliant, Marcus & ten Raa, Thijs, 2003. "Increasing returns and perfect competition: the role of land," Journal of Urban Economics, Elsevier, vol. 54(2), pages 339-367, September.
    10. André Grimaud, 1996. "Modèle continu et modèle discret en économie urbaine," Revue Économique, Programme National Persée, vol. 47(2), pages 289-309.
    11. Berliant, Marcus & Peng, Shin-Kun & Wang, Ping, 2002. "Production Externalities and Urban Configuration," Journal of Economic Theory, Elsevier, pages 275-303.
    12. Marcus Berliant & Yves Zenou, 2014. "Labor Differentiation and Agglomeration in General Equilibrium," International Regional Science Review, , vol. 37(1), pages 36-65, January.
    13. Berliant, M. & Ten Raa, T., 2003. "Increasing returns to scale and perfect competition : The role of land," Other publications TiSEM c4f1929e-6651-4959-b757-4, Tilburg University, School of Economics and Management.
    14. Marcus Berliant & Tomoya Mori, 2017. "Beyond urban form: How Masahisa Fujita shapes us," International Journal of Economic Theory, The International Society for Economic Theory, vol. 13(1), pages 5-28, March.
    15. Konishi, Hideo, 2008. "Tiebout's tale in spatial economies: Entrepreneurship, self-selection, and efficiency," Regional Science and Urban Economics, Elsevier, vol. 38(5), pages 461-477, September.
    16. Kelley, Hugh & Evans, Tom, 2011. "The relative influences of land-owner and landscape heterogeneity in an agent-based model of land-use," Ecological Economics, Elsevier, vol. 70(6), pages 1075-1087, April.
    17. Hiroki Watanabe, 2015. "A Spatial Production Economy Explains Gross Metropolitan Product," ERSA conference papers ersa15p30, European Regional Science Association.
    18. 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.
    19. Turnbull, Geoffrey K., 1997. "Revealed Preference and Location Choice," Journal of Urban Economics, Elsevier, vol. 41(3), pages 358-376, May.
    20. Ryosuke Okamoto, 2009. "The Optimal Provision Of Local Public Goods In A Metropolitan Area With Flexible Jurisdictional Boundaries," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 349-359.
    21. Abdel-Rahman, Hesham M. & Wang, Ping, 1997. "Social Welfare and Income Inequality in a System of Cities," Journal of Urban Economics, Elsevier, vol. 41(3), pages 462-483, May.
    22. Berliant, Marcus & Dunz, Karl, 2004. "A foundation of location theory: existence of equilibrium, the welfare theorems, and core," Journal of Mathematical Economics, Elsevier, vol. 40(5), pages 593-618, August.
    23. Marcus Berliant & Courtney LaFountain, 2004. "Space in General Equilibrium," Urban/Regional 0408002, EconWPA, revised 27 Jun 2005.

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