A Simple Theory of Smart Growth and Sprawl
This paper considers the simultaneous determination of residential density and the supply of local versus remote retail services. Possible equilibrium development patterns either correspond closely to what anti-sprawl activists describe as smart growth, or to its opposite. Equilibrium and optimal patterns of development do not always coincide. When equilibrium and optimal patterns of development diverge, optimal density is always discretely (as opposed to marginally) higher than equilibrium density. This occurs in the absence of congestion externalities, and is due to a free-rider problem and a coordination problem. The analysis indicates that a tax on large lots or a subsidy for small lots may be welfare improving under certain conditions.
|Date of creation:||31 Mar 2006|
|Contact details of provider:|| Postal: 150 St. George Street, Toronto, Ontario|
Phone: (416) 978-5283
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.:
- Berliant, Marcus & Konishi, Hideo, 2000.
"The endogenous formation of a city: population agglomeration and marketplaces in a location-specific production economy,"
Regional Science and Urban Economics,
Elsevier, vol. 30(3), pages 289-324, May.
- Marcus Berliant & Hideo Konishi, 2000. "The Endogenous Formation of a City: Population Agglomeration and Marketplaces in a Location-Specific Production Economy," Boston College Working Papers in Economics 451, Boston College Department of Economics.
- Duranton, Gilles & Puga, Diego, 2003.
"Microfoundations of Urban Agglomeration Economies,"
CEPR Discussion Papers
4062, C.E.P.R. Discussion Papers.
- Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117 Elsevier.
- Giles Duranton & Diego Puga, 2003. "Micro-Foundations of Urban Agglomeration Economies," NBER Working Papers 9931, National Bureau of Economic Research, Inc.
- Scotchmer, Suzanne, 2002. "Local public goods and clubs," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 29, pages 1997-2042 Elsevier.
- 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.
- Marcy Burchfield & Henry G. Overman & Diego Puga & Matthew A. Turner, 2005.
"Causes of sprawl: A portrait from space,"
tecipa-192, University of Toronto, Department of Economics.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
- Matthew Turner, 2003.
"Landscape Preferences and Patterns of Residential Development,"
mturner-03-01, University of Toronto, Department of Economics.
- Turner, Matthew A., 2005. "Landscape preferences and patterns of residential development," Journal of Urban Economics, Elsevier, vol. 57(1), pages 19-54, January.
- Berliant, Marcus & Fujita, Masahisa, 1992.
"Alonso's Discrete Population Model of Land Use: Efficient Allocations and Competitive Equilibria,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 535-566, August.
- Berliant, M. & Fujita, M., 1990. "Alonso'S Discrete Population Model Of Land Use: Efficient Allocations And Competitive Equilibria," RCER Working Papers 217, University of Rochester - Center for Economic Research (RCER).
- Brueckner, Jan K., 1987. "The structure of urban equilibria: A unified treatment of the muth-mills model," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 20, pages 821-845 Elsevier.
- Harrison, David Jr. & Kain, John F., 1974. "Cumulative urban growth and urban density functions," Journal of Urban Economics, Elsevier, vol. 1(1), pages 61-98, January.
When requesting a correction, please mention this item's handle: RePEc:tor:tecipa:tecipa-208. 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 references are entirely missing, you can add them using this form.