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Sprawl and Blight

Author

Listed:
  • Jan K. Brueckner

    (Department of Economics, University of California-Irvine)

  • Robert W. Helsley

    (Haas School of Business, University of California, Berkeley)

Abstract

The objective of this paper is to show how the same market failures that contribute to urban sprawl also contribute to urban blight. The paper develops a simple dynamic model in which new suburban and older central-city properties compete for mobile residents. The level of housing services generated by older properties depends on current maintenance or reinvestment expenditures. In this setting, market failures that reduce the cost of occupying suburban locations, thus leading to excessive suburban development, also depress central-city housing prices and undermine maintenance incentives, leading to deficient levels of central-city reinvestment. Corrective policies that shift population from the suburbs to the center result in higher levels of reinvestment in central-city housing, therefore reducing blight.

Suggested Citation

  • Jan K. Brueckner & Robert W. Helsley, 2009. "Sprawl and Blight," Working Papers 091003, University of California-Irvine, Department of Economics.
    • Handle: RePEc:irv:wpaper:091003
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    References listed on IDEAS

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    More about this item

    Keywords

    Urban sprawl; Urban blight; Market failures;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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