A view on optimal urban growth controls

Fu-Chuan Lai and Shu-Tsung Yang
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Shu-Tsung Yang: Taiwan Institute of Economic Research, Taipei, Taiwan

The Annals of Regional Science, 2002, vol. 36, issue 2, 229-238

Abstract: Sasaki (1998) generalizes the urban-growth-control model developed by Brueckner and Lai (1996) (B-L, hereafter) and concludes that the optimal urban-growth control is less (more) stringent than the B-L model when an agglomeration effect (public-good-provision effect) is considered. However, this paper here proves that the optimal urban-growth control may or may not be more stringent than the B-L model when the agglomeration effect or (and) the public-good-provision effect is (are) considered. This result sharply differs from that of Sasaki's model. The intuition behind it is that the increase in commuting costs for landowners due to renter-immigration is overlooked in Sasaki's model.

JEL-codes: R11 R13 R14 R23 (search for similar items in EconPapers)
Date: 2002-08-02
Note: Received: February 2001/Accepted: September 2001
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