Estimation of optimal metropolitan size in Japan with consideration of social costs

Abstract

The main purpose of this study is to estimate the optimal city size which would attain maximum total surplus and sustainability, or a city size in which total benefits would equal total costs. We apply regressions to the total benefit function and the total cost function for 269 employment metropolitan areas for the year 2000 in Japan. Our study can be distinguished from others in that we include in total costs such social costs as environmental pollution. Our findings are that the optimal city size is 393-433 thousand persons. The sustainable limit for city size is 1,057-1,150 thousand.

Are Chinese Cities Oversized?

“…Thus, results of optimal city size vary from study to study based on different considerations. In addition, as optimal size estimation only considers the relationship between traditional economic benefits and physical size, there are no studies in which social benefits and costs have been taken into account (Mizutani, Tanaka, and Nakayama 2015).…”

“…As a result, another strand of literature takes a critical view of theoretical work on city size and employs an approach that estimates the equilibrium size from benefit and cost functions, including both economic and social costs (Camagni, Capello, and Caragliu 2016; Mizutani, Tanaka, and Nakayama 2015). Camagni, Capello, and Caragliu (2013) proposed an intermediate solution that preserves the inherent economic rationality of cities while permitting cities with heterogeneous cost and production functions.…”

Big or Small? Dilemma of Communal Size

“…Badacze japońscy wykonywali analizy zmierzające do określenia optymalnej wielkości miast, opierając się na metodzie benchmarkingu kosztów świadczenia poszczególnych usług. Nie znaleźli jednak zadowalających korelacji, twierdząc, że problem wymaga jeszcze wielu badań empirycznych [Mizutani, Tanaka 2007]. Z kolei naukowcy francuscy, analizując 36 tys.…”