IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Cities in competition, characteristic time, and leapfrogging developers

Listed author(s):
  • Dani Broitman
  • Daniel Czamanski

In a recent paper Czamanski and Roth (2011 Annals of Regional Science 46 101–118) demonstrated that, because the profitability of construction projects is influenced by variations in the time incidence of costs and revenues, despite declining willingness to pay and land gradients with distance from central business districts, profitability can experience local maxima away from urban centers. The time until the realization of revenues was termed ‘characteristic time’. Its size is the result of planning polices and can lead to leapfrogging and scattered development, especially when interest rates are low or negligible. We explained this result by modeling the simple behavior of developers in the context of a single linear city. In this paper we consider the case of two municipalities with different development policies and characteristic time functions. We explore local maxima in profitability, typical of disequilibrium situations, especially during periods when cities are growing. Myopic assumptions, in the sense that each city is interested only in what happens on its side of the municipal boundary, can easily lead to unintended leapfrogging. Competition between cities can result in intentional leapfrogging or in spatially concentrated development, depending on the policy objectives. We extend the analysis further and consider qualitatively different cities that give rise to different gravity-type forces and differences in willingness to pay. The demand and supply sides of the building market are integrated into the model. The additional considerations can lead to various patterns of scattered development capable of explaining the spatial structure of metropolitan areas. Keywords: urban spatial dynamics, sprawl, characteristic time, high-rise buildings

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:
File Function: abstract
Download Restriction: Fulltext access restricted to subscribers, see for details

File URL:
File Function: main text
Download Restriction: Fulltext access restricted to subscribers, see for details

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Pion Ltd, London in its journal Environment and Planning B: Planning and Design.

Volume (Year): 39 (2012)
Issue (Month): 6 (November)
Pages: 1105-1118

in new window

Handle: RePEc:pio:envirb:v:39:y:2012:i:6:p:1105-1118
Contact details of provider: Web page:

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:pio:envirb:v:39:y:2012:i:6:p:1105-1118. 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: (Neil Hammond)

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.