Download e-book for kindle: Handbook of Regional and Urban Economics, Vol. 2: Urban by E.S. Mills

By E.S. Mills

This moment quantity of the instruction manual offers expert surveys of all of the very important subject matters in city economics. the 1st part includes 6 surveys on locational research, the second one, five surveys of particular city markets, and the 3rd half offers five surveys of presidency coverage issues.The publication brings jointly exhaustive study by means of unique students from many nations. it's the basically entire survey quantity of city economics and will function a reference quantity to students and graduate scholars for a few years.

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Additional info for Handbook of Regional and Urban Economics, Vol. 2: Urban Economics

Sample text

In the presence of congestion, a second order equation is obtained because of the interrelationship between locations and land rents at every distance, which enters the expression for the price of transportation, (39) above. Solution generally requires numerical methods. Once r(u) is known, population locations and density gradients can be readily determined. Mills' (1972) formulation assumed housing demand had a constant price elasticity, q(u) =dP(u)"2, and where d and 02 are parameters, and that housing was produced by a Cobb-Douglas technology with land coefficient ct2 .

The importance of neighborhood characteristics was first illustrated by empirical studies of housing prices. Housing services are defined as a multidimensional vector of attributes, including characteristics of both the structure and the neighborhood. In addition to valuing accessibility to the city center, households bid up the prices of housing which is located in more preferred neighborhoods. Relationships between observed housing prices and structure or neighborhood characteristics are called hedonic price equations.

1. Models without congestion Urban location models initially focused on the role of land in the production of transportation services. Mills (1967, 1970) noted that equilibrium conditions in the land market reflected the fact that land used for transportation was unavail- Ch. 18: Urban Residential Location 737 able for consumption. In a monocentric city transportation service supplied at any distance u must accommodate all persons residing beyond that point who must commute to a more central employment site.

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Handbook of Regional and Urban Economics, Vol. 2: Urban Economics by E.S. Mills

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