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Developers’ choices under varying characteristic time and competition among municipalities


  • Daniel Czamanski


  • Dani Broitman


In a previous paper (Czamanski and Roth in Ann Reg Sci 46(1):101–118, 2011 ), we demonstrated that spatial variation in characteristic time can lead to leapfrogging and scattered development, especially in times when interest rates are low or negligible. We explained this result by modeling the simple behavior of developers in the context of a single city within a linear space. In this paper, we consider the case of two municipalities that leads to development policies that are reflected in different characteristic time functions in each territory. Myopic assumptions, in the sense that each city is interested only in what happens on its side of the border, can easily lead to unintended leapfrogging. Whereas competition between the cities, including in the case that each city takes into consideration processes in the entire region, can result in intentional leapfrogging or in spatially concentrated development, depending on the policy objectives of the authorities. Copyright Springer-Verlag 2012

Suggested Citation

  • Daniel Czamanski & Dani Broitman, 2012. "Developers’ choices under varying characteristic time and competition among municipalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 733-743, December.
  • Handle: RePEc:spr:anresc:v:49:y:2012:i:3:p:733-743
    DOI: 10.1007/s00168-011-0451-7

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    References listed on IDEAS

    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    2. Daniel Czamanski & Rafael Roth, 2011. "Characteristic time, developers’ behavior and leapfrogging dynamics of high-rise buildings," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(1), pages 101-118, February.
    3. Wheaton, William C., 1982. "Urban residential growth under perfect foresight," Journal of Urban Economics, Elsevier, vol. 12(1), pages 1-21, July.
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    Cited by:

    1. Czamanski, Daniel & Broitman, Dani, 2017. "Information and communication technology and the spatial evolution of mature cities," Socio-Economic Planning Sciences, Elsevier, vol. 58(C), pages 30-38.

    More about this item


    R11; R12;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)


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