|European Regional Science Association|
The abstract for paper number 224:
Dolores Garcia, Departament d'Economia Aplicada
Universitat de les Illes Balears, Palma de Mallorca, Spain, Ricard Torres, Faculty of Economics and Business
Universitat de Girona
ITAM (Mexico), Girona, Spain
Competition among Cities with Density Levels
This paper considers the strategic adoption of density levels to control and guide urban growth in a closed system of cities. The density level in each city (negatively) affects the utility of resident households. The main distinction with respect to related literature is that it allows for the possibility of adjustment of variables such as the sizes of the cities in the system, considered here to be endogenous. It is found that city sizes and densities relate inversely. It is shown that welfare-decreasing density levels may be enacted by local jurisdictions that maximize aggregate land rents. In particular, densities arising from the competition process result too low and the utility level of the system would be higher if densities were to increase.
Unfortunately full paper has not been submitted.