IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Landscape Preferences and Patterns of Residential Development

  • Matthew Turner

I analyze a model of residential location choice in which people derive utility from their proximity to open space. When people have such landscape preferences a new residential development contains more people, more tightly packed than is optimal. More surprising, in a model where new residents arrive simultaneously, I find that land price gradients are highly non-monotonic and do correctly reflect the value of open space. On the other hand, when new residents arrive sequentially, land price gradients are nearly monotonic but do not correctly reflect the value of open space. Finally, dynamic equilibria generally have the property that more remote areas are developed before more central areas. These results have a number of interesting implications for policy. In particular; (1) the creation of central city parks is welfare improving, (2) infill development of central city open space is not welfare improving, (3) the ability of regulation to restrict development at the city s limit, greenbelts , to improve welfare does not derive from a taste for nearby open space, and (4), creating small parks in undeveloped areas before they are subject to development pressure may deter leapfrogging development. Finally, the fact that land prices need not reflect the value of open space suggests that hedonic estimates may understate the value of such open space.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: MainText
Download Restriction: no

Paper provided by University of Toronto, Department of Economics in its series Working Papers with number mturner-03-01.

in new window

Length: 36 pages
Date of creation: 11 Jul 2003
Date of revision:
Handle: RePEc:tor:tecipa:mturner-03-01
Contact details of provider: Postal: 150 St. George Street, Toronto, Ontario
Phone: (416) 978-5283

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Kenneth T. Rosen & Lawrence F. Katz, 1981. "Growth Management and Land use Controls: The San Francisco Bay Area Experience," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 9(4), pages 321-344.
  2. Katz, Lawrence & Rosen, Kenneth T, 1987. "The Interjurisdictional Effects of Growth Controls on Housing Prices," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 149-60, April.
  3. James C. Ohls & David Pines, 1975. "Discontinuous Urban Development and Economic Efficiency," Land Economics, University of Wisconsin Press, vol. 51(3), pages 224-234.
  4. Henderson, Vernon & Mitra, Arindam, 1996. "The new urban landscape: Developers and edge cities," Regional Science and Urban Economics, Elsevier, vol. 26(6), pages 613-643, December.
  5. Berliant, Marcus & Peng, Shin-Kun & Wang, Ping, 2002. "Production Externalities and Urban Configuration," Journal of Economic Theory, Elsevier, vol. 104(2), pages 275-303, June.
  6. Strange, William, 1992. "Overlapping neighborhoods and housing externalities," Journal of Urban Economics, Elsevier, vol. 32(1), pages 17-39, July.
  7. Acharya, Gayatri & Bennett, Lynne Lewis, 2001. "Valuing Open Space and Land-Use Patterns in Urban Watersheds," The Journal of Real Estate Finance and Economics, Springer, vol. 22(2-3), pages 221-37, March-May.
  8. Shultz, Steven D & King, David A, 2001. "The Use of Census Data for Hedonic Price Estimates of Open-Space Amenities and Land Use," The Journal of Real Estate Finance and Economics, Springer, vol. 22(2-3), pages 239-52, March-May.
  9. Elena G. Irwin, 2002. "The Effects of Open Space on Residential Property Values," Land Economics, University of Wisconsin Press, vol. 78(4), pages 465-480.
  10. Fujita, Masahisa, 1976. "Spatial patterns of urban growth: Optimum and market," Journal of Urban Economics, Elsevier, vol. 3(3), pages 209-241, July.
  11. Wu, JunJie & Plantinga, Andrew J., 2003. "The influence of public open space on urban spatial structure," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 288-309, September.
  12. Mills, David E., 1981. "Growth, speculation and sprawl in a monocentric city," Journal of Urban Economics, Elsevier, vol. 10(2), pages 201-226, September.
  13. Brueckner, Jan K. & von Rabenau, Burkhard, 1981. "Dynamics of land-use for a closed city," Regional Science and Urban Economics, Elsevier, vol. 11(1), pages 1-17, February.
  14. Elena G. Irwin, 2002. "Interacting agents, spatial externalities and the evolution of residential land use patterns," Journal of Economic Geography, Oxford University Press, vol. 2(1), pages 31-54, January.
  15. Braid, Ralph M., 1991. "Residential spatial growth with perfect foresight and multiple income groups," Journal of Urban Economics, Elsevier, vol. 30(3), pages 385-407, November.
  16. Kahn, Matthew E, 2001. "City Quality-of-Life Dynamics: Measuring the Costs of Growth," The Journal of Real Estate Finance and Economics, Springer, vol. 22(2-3), pages 339-52, March-May.
  17. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
  18. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
  19. Brueckner, Jan K., 1983. "The economics of urban yard space: An "implicit-market" model for housing attributes," Journal of Urban Economics, Elsevier, vol. 13(2), pages 216-234, March.
  20. Paul Cheshire & Stephen Sheppard, 2001. "The Welfare Economics of Land Use Planning," Department of Economics Working Papers 2001-03, Department of Economics, Williams College.
  21. Helsley, Robert W., 1990. "Knowledge and production in the CBD," Journal of Urban Economics, Elsevier, vol. 28(3), pages 391-403, November.
  22. Braid, Ralph M., 1988. "Optimal spatial growth of employment and residences," Journal of Urban Economics, Elsevier, vol. 24(2), pages 227-240, September.
  23. Wildasin, David E., 1986. "Spatial variation of the marginal utility of income and unequal treatment of equals," Journal of Urban Economics, Elsevier, vol. 19(1), pages 125-129, January.
  24. Bar-Ilan, Avner & Strange, William C., 1996. "Urban Development with Lags," Journal of Urban Economics, Elsevier, vol. 39(1), pages 87-113, January.
  25. Geoghegan, Jacqueline & Wainger, Lisa A. & Bockstael, Nancy E., 1997. "Spatial landscape indices in a hedonic framework: an ecological economics analysis using GIS," Ecological Economics, Elsevier, vol. 23(3), pages 251-264, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:tor:tecipa:mturner-03-01. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RePEc Maintainer)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.