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Title:An analysis of urban growth controls with resident landowners
Author(s):Lai, Fu-Chuan
Doctoral Committee Chair(s):Brueckner, Jan K.
Department / Program:Economics
Degree Granting Institution:University of Illinois at Urbana-Champaign
Subject(s):Economics, Theory
Urban and Regional Planning
Abstract:Instead of using the absentee-landowner assumption which prevails in the literature, this study develops a generalized growth-control model with resident landowners. It is shown that resident landowners have a weaker taste for growth control than their absentee counterparts. The reason is that resident landowners ignore the rent increase on the land they occupy, because they pay that rent to themselves. In contrast, the absentee landowners benefit from the increase in rent all over the city.
The separate-ownership assumption is then relaxed to allow cross-ownership. When landowners in the controlling city own all of their city's land, the growth control becomes looser as their ownership share in the passive city falls. This occurs because the growth control benefits holders of land in the passive city. When controlling landowners obtain less benefit from the passive city, the incentive to tighten the control weakens. Building on the resident-landownership model, when amenity effects are present, the growth control is more stringent. This is because a larger population negatively affects amenity values. On the other hand, the growth control will be less stringent when the wage effect is considered, since a larger population enhances productivity.
The assumption of fixed land consumption is then replaced by flexible land consumption, so that a passive city is not necessary. With the help of a numerical model, comparative-static analysis is performed to explore the adjustment of land consumption to parameter changes.
This study also analyzed a one-city dynamic growth-control model with absentee landowners. A numerical example is developed to allow comparative-static analysis. The most important factor for the determination of the city size is renters' income. The outside city utility is the most important factor for the population size of the city.
Issue Date:1995
Rights Information:Copyright 1995 Lai, Fu-Chuan
Date Available in IDEALS:2011-05-07
Identifier in Online Catalog:AAI9624403
OCLC Identifier:(UMI)AAI9624403

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