Reply to the alternative optimal 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, 245 pages

Abstract: Sasaki (2002) argues that: (1) "the agglomeration effect in the (Lai and Yang 2002, (L-Y)) paper is different from the introduction of urban production in Sasaki (1998)"; and (2) the "treatment of public good in the (L-Y) paper is strange," because the public good provided by owner-residents is only consumed by renter-residents. This reply shows that (1) the agglomeration effect in the L-Y model catches the key results of urban production presented in Sasaki's model; and (2) both renter and owner-residents consuming the public good have been developed in this reply. However, the major conclusions of the L-Y model are still hold.

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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