Modeling urban land use
nHousing producers
•Production function H(N,
l) to produce square meters of
housing
•N = capital input, l=land input
•Constant returns to scale and free entry determines an
equilibrium land rent function r(x) and a
capital-land ratio (building density) S(x)
•Land value and building density decline with distance
•Combining the S(x) with housing demand q(x) provides a solution for the population density D(x,t,y,u) as
a function of distance t and utility
level u
nThe extent of urban land use is determined by the condition:
