Modeling urban land use
nEquilibrium 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