ECONOMIC THEORIES AND EMPIRICAL MODELS OF LOCATION CHOICE AND LAND USE: A SURVEY

The objective of this study was to make a survey of the economics of locational choice and land use in urban areas. The evaluation was conducted from the perspective provided by the Arrow-Debreu framework of general equilibrium, which imposed the limitations of (1) assuming that locational choices are made in the context of a capitalist economy and (2) excluding governmental or, more generally, collective action. One section of the paper was devoted to a survey of the historical development of the significant literature. It was shown that from the point of view of the Arrow- Debreu framework, this literature could be characterized as a series of explorations of special cases, and as partial analysis. Another section reviewed a few studies which have explored the possibility of relaxing the assumption of convexity in the Arrow-Debreu model, specifically by way of introducing indivisibilities into the locational analysis. In a third section a survey was made of a number of noteworthy and significant empirical studies which have been motivated by the analytical work reviewed in earlier sections. The final section discussed the challenging problems which arise when one of the most basic assumptions of the Arrow-Debreu framework is violated, namely the assumption of the existence of all markets.

Media Info

  • Features: Figures; References;
  • Pagination: p. 421-430
  • Serial:
    • Volume: 63
    • Issue Number: 3

Subject/Index Terms

Filing Info

  • Accession Number: 00084203
  • Record Type: Publication
  • Report/Paper Numbers: Proceeding
  • Files: TRIS
  • Created Date: May 7 1975 12:00AM