Reply to the alternative optimal growth controls
Sasaki (2002) argues that: (1) "the agglomeration effect in the (Lai and Yang 2002, (L-Y)) paper is different from the introduction of urban production in Sasaki (1998)"; and (2) the "treatment of public good in the (L-Y) paper is strange," because the public good provided by owner-residents is only consumed by renter-residents. This reply shows that (1) the agglomeration effect in the L-Y model catches the key results of urban production presented in Sasaki's model; and (2) both renter and owner-residents consuming the public good have been developed in this reply. However, the major conclusions of the L-Y model are still hold.
Volume (Year): 36 (2002)
Issue (Month): 2 ()
|Note:||Received: February 2001/Accepted: September 2001|
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