Impact of α -landownership on Residential Land Use Equilibria
In the previous chapter, we have investigated the household’s behavior with land, in which the location of the household is fixed, and obtained a psychological base for the household’s desire for owning a housing lot in the city. Although this result is interesting, we would like to emphasize the importance of the spatial aspect from the viewpoint of urban economics. Therefore, this chapter proposes a model of residential land use, called α-landownership model, in which a group of city residents is assumed to own the circular area from the central business district (CBD) up to a radius α.
KeywordsCentral Business District Residential Land Urban Economy Land Rent Equilibrium Utility
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