Zoning in cities with traffic congestion and agglomeration economies

Hyok-Joo Rhee, Sanggyun Yu and Georg Hirte ()

Regional Science and Urban Economics, 2014, vol. 44, issue C, 82-93

Abstract: We analyze land use regulations in cities with traffic congestion and production spillovers. Land is allocated between residential and industrial uses inside the city boundary or between urban and rural uses at the city boundary. The production is dispersed over the city, and people and firms freely choose locations of residence and production. We derive conditions for optimally adjusting land uses expressed in terms of observable data, and modify and extend the findings of the literature. According to numerical simulations, the land use control combined with production subsidy is almost as efficient as the first-best policy mix.

Keywords: Zoning; Traffic congestion; Agglomeration economies; Nonmonocentric city; Efficiency (search for similar items in EconPapers)
JEL-codes: H2 H7 R3 R4 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:44:y:2014:i:c:p:82-93

DOI: 10.1016/j.regsciurbeco.2013.12.002

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