Modeling urban land use
nFinally, equilibrium requires:
nThe model provides a solution for the extent of urban land use as a function of
•Population
•Income
•Agricultural land value
•Transportation cost
nIf we generalize to include an export sector, then urban land use will also depend on
•MP of land in goods production
•World price of the export good
• MP of land
in housing production
• Land made
available for housing