Costs of Adjustment and the Spatial Pattern of a Growing Open City

Hochman, Oded; Pines, David

doi:10.2307/1913387

Cited by 29 publications

(9 citation statements)

References 16 publications

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“…Relocation costs have played an important role in the literature on the dynamics of urban land use succession [Hochman andPines (1980, 1982) and Brueckner (1977)l. These models demonstrate that urban development can leave vacant parcels, lead to housing abandonment, and cause areas of commercial activity to be interspersed with areas of residential activity.…”

Section: Discussionmentioning

confidence: 99%

Interdependent Behavior With Relocation Costs: The Comparative Statics of Spatial History*

Clapp¹

1986

Journal of Regional Science

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Relocation costs are a form of sunk costs because they are relevant to new entrants, not to agents at their existing locations. With sufficiently high relocation costs, initial (historically given) locations and other conditions determine the equilibrium assignment of agents to locations. Comparative static results depend on initial conditions, i.e., history matters and historical persistence can be characterized.The model suggests empirically-relevant results which can be tested by collecting data on relocation and transportation costs. For example, appropriate levels of these costa imply that suburbanization always occurs with the entry of new firms. Sequential entry strategies may be adopted by existing firms which earn pure profits. This may be contrasted with traditional NUE models which predict changes in the boundaries of central zones.

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Section: Discussionmentioning

confidence: 99%

Interdependent Behavior With Relocation Costs: The Comparative Statics of Spatial History*

Clapp¹

1986

Journal of Regional Science

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“…For example, some areas can be 74 By optimal outcome we mean the one that maximizes welfare. 75 Early models that studied the optimal allocation of workers within a monocentric city include: Borukhov and Hochman (1977), Dixit (1973) and Hochman and Pines (1982) while Stull (1974) and Helpman and Pines (1977) obtain an endogenous size of business district. These models exogenously impose the land use structure and assume that workers commute to the CBD rather than their actual work places.…”

Section: Is the Market Equilibrium Optimal? Some Policy Optionsmentioning

confidence: 99%

Jobs and Land Use within Cities: A Survey of Theory, Evidence, and Policy

Goswami

Lall

2019

The World Bank Research Observer

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Over the last century, the urban spatial structure of cities has transformed dramatically from a traditional monocentric configuration to varying forms of decentralized organization. This paper reviews theory and empirical evidence to understand the urban morphology of jobs and land use within a city. Our survey highlights four broad insights: (i) The evolution of monocentric to polycentric centers have been accompanied by structural changes within the city. (ii) The internal geography of a city is an outcome of the trade-off between the pull from agglomeration economies and the push from congestion. (iii) The presence of externalities implies that the equilibrium spatial organization achieved by profit-maximizing firms may not necessarily be optimal. This justifies the role of public policy in addressing associated market failures. (iv) The productive edge and competitiveness of a city can be enhanced by introducing policies that increase the overall connectivity to take advantage of economic opportunities across the metropolitan area. The survey also puts together a wide range of policy instruments useful in closing the gap between equilibrium urban spatial structures and the optimal outcome.

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“…Dynamic spatial equilibrium models of urban land use build from their static counterpart by introducing some exogenous growth mechanism (e.g., population or income growth, technological innovation) and assumptions about expectations (typically perfect foresight or rational expectations). The models often assume a monocentric urban area with centralized employment (e.g., Anas, 1978; Arnott, 1980; Hochman and Pines, 1982; Turnbull, 1988; Capozza and Helsley, 1989; Braid, 2001), but in other cases space is defined more generally along a line (e.g., Lucas and Rossi‐Hansberg, 2002; Berliant and Wang, 2008). These models have been used to study various aspects of urban spatial growth and decline, including leapfrogging and other forms of discontinuous urban development patterns (Fujita, 1976; Ohls and Pines, 1975; Mills, 1981; Wheaton, 1982).…”

Section: Spatial Economic Models Of Urban Land Use Changementioning

confidence: 99%

New Directions for Urban Economic Models of Land Use Change: Incorporating Spatial Dynamics and Heterogeneity

Irwin¹

2010

Journal of Regional Science

185

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We review the usefulness of urban spatial economic models of land use change for the study and policy analysis of spatial land use-environment interactions. We find that meaningful progress has been made in econometric and monocentric models extended to account for multiple sources of spatial heterogeneity and in the development of general equilibrium models with spatial dynamics. Despite these advances, more work is needed in developing models with greater realism. Most agent-based computational models of urban land use change currently lack economic fundamentals, but provide a flexible means of linking microlevel behavior and interactions with macrolevel land use dynamics. In combination with empirical methods to identify parameters, this framework provides a promising approach to modeling spatial land use dynamics and policy effects. Copyright (c) 2010, Wiley Periodicals, Inc.

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Costs of Adjustment and the Spatial Pattern of a Growing Open City

Cited by 29 publications

References 16 publications

Interdependent Behavior With Relocation Costs: The Comparative Statics of Spatial History*

Interdependent Behavior With Relocation Costs: The Comparative Statics of Spatial History*

Jobs and Land Use within Cities: A Survey of Theory, Evidence, and Policy

New Directions for Urban Economic Models of Land Use Change: Incorporating Spatial Dynamics and Heterogeneity

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