Landownership and Residential Land Use in Urban Economies: by Suminori Tokunaga

By Suminori Tokunaga

As a prototype for introducing landownership into an city residential selection version, a easy version of residential land use is proposed within which a gaggle of urban citizens is believed to possess together a round quarter of land extending from the principal company district. Absentee and public landownership versions are regarded as targeted situations. With this uncomplicated version, the lifestyles and area of expertise of the land-use equilibrium will be proven, and the results of landownership, loved ones source of revenue, and inhabitants might be analyzed. by means of extending this version to an arbitrary subset of the town land and through introducing a crowding externalities variable, the results of landownership at the land-use equilibrium are tested utilizing comparative information. This booklet might be super necessary for these whose paintings or learn covers the fields of economics, city making plans, or local studies.

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Extra resources for Landownership and Residential Land Use in Urban Economies: Existence and Uniqueness of the Equilibrium

Example text

U; < u/. , u' > ub). 2a. 7. Effect of When ex yO1 increase when a = O. > 0, however, we must consider another effect of y~-increase. That is, when ex > 0, the land rent income TRex IN 2 for class 2 households increases as a consequence of land rent increase in the city. This in turn contributes toward enhancing the equilibrium utility of class 2. Therefore, when ex is sufficiently large, this positive effect on u~ may overwhelm the direct negative effect of yO-increase on u* (which is caused by the increase in demand for land by class 1 2 1 households).

22) Finally, define the equilibrium rent curve R(r,D) as IjJ ( yO _ T( r) u (D» { RIjJ(Y~+D-~(r;, R(r, D) for O:s r:s r I (D) , u/D» forrl(D):s r:s r/D) for r A ~ r (D). 23) 1, 2), I I determined above satisfies all the conditions of Definition 2 when each TR IN ex. 2 is replaced by D. (D), R(r,D); landownership model with income vector (y~, Y~ + D). It can be readily seen, by construction, that it also represents the unique equilibrium for the model. 3. Given any D ~ 0, there exists a unique land use equilibrium for the absentee landownership model with income vector (y~, Y~ + D), which is denoted by (uj(D), rj(D), R(r,D); i = 1, 2).

Effect of ~ increase. 11) and that points Band B' have the same height. 15) 54 Landownership and Residential Land Use in Urban Economies Next, we examine the changes in the land use equilibrium when the income vector (y~, y~ + 0) changes from (y~b, y~ + Oa) to (y~b, y~ + O~. 4) we have TR (yoa, Oa) < TR (yOb, Oa). 5) that IX 1 IX 1 TR (yOb Oa)/N > Oa. 17) Therefore, as the income vector changes from (y~b, y~ + Oa) to (y~b, y~ + Ob), class 2's income increases from (Y~ + Oa) to (Y~ + Db). 3, the second boundary rent curve moves outward.

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