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Estimation of optimal metropolitan size in Japan with consideration of social costs

Author

Listed:
  • Fumitoshi Mizutani

    ()

  • Tomoyasu Tanaka

    ()

  • Noriyoshi Nakayama

    ()

Abstract

The main purpose of this study is to estimate the optimal city size which would attain maximum total surplus and sustainability, or a city size in which total benefits would equal total costs. We apply regressions to the total benefit function and the total cost function for 269 employment metropolitan areas for the year 2000 in Japan. Our study can be distinguished from others in that we include in total costs such social costs as environmental pollution. Our findings are that the optimal city size is 393–433 thousand persons. The sustainable limit for city size is 1,057–1,150 thousand. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Fumitoshi Mizutani & Tomoyasu Tanaka & Noriyoshi Nakayama, 2015. "Estimation of optimal metropolitan size in Japan with consideration of social costs," Empirical Economics, Springer, vol. 48(4), pages 1713-1730, June.
  • Handle: RePEc:spr:empeco:v:48:y:2015:i:4:p:1713-1730
    DOI: 10.1007/s00181-014-0850-6
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    File URL: http://hdl.handle.net/10.1007/s00181-014-0850-6
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    References listed on IDEAS

    as
    1. Keizo Mizuno & Fumitoshi Mizutani & Noriyoshi Nakayama, 2006. "Industrial diversity and metropolitan unemployment rate," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(1), pages 157-172, March.
    2. Small, K.A. & Kazimi, C., 1994. "On the Costs of Air Pollution from Motor Vehicules," Papers 94-95-3, California Irvine - School of Social Sciences.
    3. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-656, September.
    4. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, April.
    5. Fumitoshi Mizutani & Yusuke Suzuki & Hiroki Sakai, 2011. "Estimation of Social Costs of Transport in Japan," Urban Studies, Urban Studies Journal Limited, vol. 48(16), pages 3537-3559, December.
    6. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
    7. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
    8. Chun-Chung Au & J. Vernon Henderson, 2006. "Are Chinese Cities Too Small?," Review of Economic Studies, Oxford University Press, vol. 73(3), pages 549-576.
    9. Arnott, Richard, 1979. "Optimal city size in a spatial economy," Journal of Urban Economics, Elsevier, vol. 6(1), pages 65-89, January.
    10. Kanemoto, Yoshitsugu & Ohkawara, Toru & Suzuki, Tsutomu, 1996. "Agglomeration Economies and a Test for Optimal City Sizes in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 10(4), pages 379-398, December.
    11. Yezer, Anthony M. J. & Goldfarb, Robert S., 1978. "An indirect test of efficient city sizes," Journal of Urban Economics, Elsevier, vol. 5(1), pages 46-65, January.
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    More about this item

    Keywords

    Optimal city size; Total surplus; Environmental costs; Social costs; R10; R12; Q50;

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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