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A small model of equilibrium mechanisms in a city

Author

Listed:
  • André De Palma

    (ENS Cachan - École normale supérieure - Cachan)

  • Stef Proost

    (Center for Economic Studies - CES - KU Leuven - CES - KU Leuven)

  • Saskia Van Der Loo

    (Center for Economic Studies - CES - KU Leuven - CES - KU Leuven)

Abstract

We use a simple economy with two interconnected geographical zones. Individuals can live and work in one of the two zones or can commute between them. This model is used to explore the dynamics of housing and work decisions after a permanent shock in labour demand occurred in one of the two zones. We illustrate the role of the different levels of expectation of developers and government transport agencies for the equilibrium on the housing and the labour markets. The model is used to identify better Cost-Benefit rules for transport invest-ments and the role of coordination between housing and transport decisions.

Suggested Citation

  • André De Palma & Stef Proost & Saskia Van Der Loo, 2013. "A small model of equilibrium mechanisms in a city," Working Papers halshs-00841105, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00841105
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00841105
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    References listed on IDEAS

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    1. Anas Alex & Arnott Richard J., 1993. "Technological Progress in a Model of the Housing - Land Cycle," Journal of Urban Economics, Elsevier, vol. 34(2), pages 186-206, September.
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    Keywords

    urban economics; transport; housing; dynamic land use;

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