IDEAS home Printed from https://ideas.repec.org/a/kap/netspa/v18y2018i4d10.1007_s11067-019-09455-8.html
   My bibliography  Save this article

Short-Term Land use Planning and Optimal Subsidies

Author

Listed:
  • L. M. Briceño-Arias

    (Universidad Técnica Federico Santa María)

  • F. Martínez

    (Universidad de Chile e Instituto Sistemas Complejos de Ingeniería)

Abstract

Urban planning is a complex problem which includes choosing a social objective for a city, finding the associated optimal allocation of agents and identifying instruments like subsidies to decentralize this allocation as a market equilibrium. We split the problem in two independent steps. First, we find the short-term optimal allocation for a social objective and, second, we derive subsidies that reproduce this optimal allocation as a market equilibrium. This splitting is supported by a fundamental result asserting that the optimal allocation of any social objective can be decentralized by applying feasible subsidies, which can be computed even in the case with location externalities and transportation costs. In the first step, we compute the optimal allocation using an algorithm to solve a convex urban planning problem, which is applicable to a wide class of objective functions. In the second step, we compute optimal subsidies in several political situations for the planner, like budget constraints and limited impact on specific agents, zones, rents and/or utilities. As an example, we simulate a prototype city which aims at improving social inclusion.

Suggested Citation

  • L. M. Briceño-Arias & F. Martínez, 2018. "Short-Term Land use Planning and Optimal Subsidies," Networks and Spatial Economics, Springer, vol. 18(4), pages 973-997, December.
    • Handle: RePEc:kap:netspa:v:18:y:2018:i:4:d:10.1007_s11067-019-09455-8
    DOI: 10.1007/s11067-019-09455-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11067-019-09455-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11067-019-09455-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Esteban Rossi-Hansberg, 2004. "Optimal Urban Land Use and Zoning," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(1), pages 69-106, January.
    2. Jiang Qian Ying, 2015. "Optimization for Multiclass Residential Location Models with Congestible Transportation Networks," Transportation Science, INFORMS, vol. 49(3), pages 452-471, August.
    3. Timmermans, Harry J.P. & Zhang, Junyi, 2009. "Modeling household activity travel behavior: Examples of state of the art modeling approaches and research agenda," Transportation Research Part B: Methodological, Elsevier, vol. 43(2), pages 187-190, February.
    4. Ellickson, Bryan, 1981. "An alternative test of the hedonic theory of housing markets," Journal of Urban Economics, Elsevier, vol. 9(1), pages 56-79, January.
    5. Bravo, Mario & Briceño, Luis & Cominetti, Roberto & Cortés, Cristián E. & Martínez, Francisco, 2010. "An integrated behavioral model of the land-use and transport systems with network congestion and location externalities," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 584-596, May.
    6. Luis Briceño & Roberto Cominetti & Cristián Cortés & Francisco Martínez, 2008. "An Integrated Behavioral Model of Land Use and Transport System: A Hyper-network Equilibrium Approach," Networks and Spatial Economics, Springer, vol. 8(2), pages 201-224, September.
    7. Ma, Xiaosu & Lo, Hong K., 2012. "Modeling transport management and land use over time," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 687-709.
    8. Lars Lundqvist & Lars-Göran Mattsson & Tschangho John Kim (ed.), 1998. "Network Infrastructure and the Urban Environment," Advances in Spatial Science, Springer, number 978-3-642-72242-4, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ma, Xiaosu & Lo, Hong K., 2012. "Modeling transport management and land use over time," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 687-709.
    2. Huai, Yue & Lo, Hong K. & Ng, Ka Fai, 2021. "Monocentric versus polycentric urban structure: Case study in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 99-118.
    3. Ying, Jiang Qian, 2024. "Optimization of regulation and fiscal policies for urban residential land use and traffic network management," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    4. Ng, Ka Fai & Lo, Hong K., 2017. "On joint railway and housing development: Housing-led versus railway-led schemes," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 464-488.
    5. Xu, Shu-Xian & Liu, Tian-Liang & Huang, Hai-Jun & Liu, Ronghui, 2018. "Mode choice and railway subsidy in a congested monocentric city with endogenous population distribution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 413-433.
    6. Edward N. Robson & Vinayak V. Dixit, 2017. "A General Equilibrium Framework for Integrated Assessment of Transport and Economic Impacts," Networks and Spatial Economics, Springer, vol. 17(3), pages 989-1013, September.
    7. Michael Wegener, 2011. "Transport in Spatial Models of Economic Development," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 3, Edward Elgar Publishing.
    8. Koster, Hans R.A. & Rouwendal, Jan, 2013. "Agglomeration, commuting costs, and the internal structure of cities," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 352-366.
    9. Jiang Qian Ying, 2015. "Optimization for Multiclass Residential Location Models with Congestible Transportation Networks," Transportation Science, INFORMS, vol. 49(3), pages 452-471, August.
    10. Ng, Ka Fai & Lo, Hong K., 2015. "Optimal housing supply in a bid-rent equilibrium framework," Transportation Research Part B: Methodological, Elsevier, vol. 74(C), pages 62-78.
    11. Huai, Yue & Lo, Hong K. & Zhang, Anming, 2025. "Optimal private housing supply under various schemes of public housing provision," Transportation Research Part B: Methodological, Elsevier, vol. 196(C).
    12. Ping-Hung Chen & Chien-Wen Peng, 2024. "Determinants of Intra-District Residential Mobility – A Case Study of Taipei Metropolitan Area," International Real Estate Review, Global Social Science Institute, vol. 27(3), pages 329-359.
    13. Katarzyna Kopczewska & Mateusz Kopyt & Piotr Ćwiakowski, 2021. "Spatial Interactions in Business and Housing Location Models," Land, MDPI, vol. 10(12), pages 1-25, December.
    14. Robbennolt, Dale & Haddad, Angela J. & Mondal, Aupal & Bhat, Chandra R., 2024. "Housing choice in an evolving remote work landscape," Transportation Research Part A: Policy and Practice, Elsevier, vol. 190(C).
    15. Edmond Daramy-Williams & Jillian Anable & Susan Grant-Muller, 2019. "Car Use: Intentional, Habitual, or Both? Insights from Anscombe and the Mobility Biography Literature," Sustainability, MDPI, vol. 11(24), pages 1-17, December.
    16. Pengyu Zhu, 2013. "Telecommuting, Household Commute and Location Choice," Urban Studies, Urban Studies Journal Limited, vol. 50(12), pages 2441-2459, September.
    17. Hirte, Georg & Tscharaktschiew, Stefan, 2018. "The impact of anti-congestion policies and the role of labor-supply margins," CEPIE Working Papers 04/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    18. Hans R. A. Koster & Jos N. van Ommeren & Piet Rietveld, 2016. "Historic amenities, income and sorting of households," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 203-236.
    19. Nathalie Picard & Andre de Palma & Sophie Dantan, 2013. "Intra-Household Discrete Choice Models Of Mode Choice And Residential Location," Articles, International Journal of Transport Economics, vol. 40(3).
    20. Rutger-Jan Lange & Coen N. Teulings, 2021. "The option value of vacant land: Don't build when demand for housing is booming," Tinbergen Institute Discussion Papers 21-022/IV, Tinbergen Institute.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:netspa:v:18:y:2018:i:4:d:10.1007_s11067-019-09455-8. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.