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Optimal Urban Land Use and Zoning

Author

Listed:
  • Esteban Rossi-Hansberg

    (Stanford University)

Abstract

The paper studies the optimal distribution of business and residential land in a circular city. Once the optimum is characterized, we analyze the effect of changes in commuting costs and externality parameters. We also propose policies like labor subsidies, land taxes and zoning restrictions that can implement the efficient allocation as an equilibrium, or close the gap between the optimal and equilibrium allocations. The results show that business land is more concentrated at the center of the city in the optimum and that higher commuting costs increase the difference between optimal and equilibrium allocations. (Copyright: Elsevier)

Suggested Citation

  • 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.
    • Handle: RePEc:red:issued:v:7:y:2004:i:1:p:69-106
    DOI: 10.1016/S1094-2025(03)00056-5
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    More about this item

    Keywords

    Land use; Spatial production externalities; Commuting costs; Zoning;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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