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Notes on the New Urban Economics

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  • Edwin S. Mills
  • James MacKinnon

Abstract

Since about 1970, ten or twenty papers have been written making use of control theory or programming to analyze optimum or market equilibrium urban land use. The purpose of these notes is to survey and evaluate this new approach to urban economics. Most contributions to the new urban economics assume that employment is concentrated at the urban center, but that housing production functions permit the amount of housing per unit of land to vary with economic conditions. An optimum or equilibrium pattern of housing density is deduced as a function of distance from the center. All contributions include assumptions about the urban transportation system, and some have congestions built into the model. The last part of the paper is a discussion of discrete and continuous representation of urban space. The two possibilities lead to different mathematical representations, and we suggest that discrete representations may be more useful for many purposes.

Suggested Citation

  • Edwin S. Mills & James MacKinnon, 1973. "Notes on the New Urban Economics," Bell Journal of Economics, The RAND Corporation, vol. 4(2), pages 593-601, Autumn.
    • Handle: RePEc:rje:bellje:v:4:y:1973:i:autumn:p:593-601
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    Cited by:

    1. Darla K Munroe, 2007. "Exploring the Determinants of Spatial Pattern in Residential Land Markets: Amenities and Disamenities in Charlotte, NC, USA," Environment and Planning B, , vol. 34(2), pages 336-354, April.
    2. Raouf Boucekkine & Giorgio Fabbri & Salvatore Federico & Fausto Gozzi, 2019. "Growth and agglomeration in the heterogeneous space: a generalized AK approach," Journal of Economic Geography, Oxford University Press, vol. 19(6), pages 1287-1318.
    3. D S Dendrinos & H Mullally, 1981. "Fast and Slow Equations: The Development Patterns of Urban Settings," Environment and Planning A, , vol. 13(7), pages 819-827, July.
    4. M J Beckmann & T F Golob & Y Zahavi, 1983. "Travel Probability Fields and Urban Spatial Structure: 1. Theory," Environment and Planning A, , vol. 15(5), pages 593-606, May.
    5. Kenneth Button, 1998. "Where did the ?new urban economics? go?," ERSA conference papers ersa98p358, European Regional Science Association.
    6. Bryan Ellickson, 1981. "Indivisibility, Housing and Public Goods," UCLA Economics Working Papers 205, UCLA Department of Economics.
    7. J G U Adams & T O'Riordan & R Hudson & M Ball & M Boddy & C A Maher & H W Richardson & B J L Berry & J M Batty & S M Macgill, 1981. "Reviews: Great Planning Disasters, Banking on the Biosphere?, North East England: The Region's Development, 1760–1960, the Urban Land Nexus and the State, the Property Boom: The Effects of Building ," Environment and Planning A, , vol. 13(11), pages 1451-1466, November.
    8. Jerome M. Ochitwa, 1984. "Applicability and Efficiency in a Land Use Plan Design Model: An Input-Output Linear Programming Approach," Urban Studies, Urban Studies Journal Limited, vol. 21(2), pages 149-154, May.
    9. Agustin Rodriguez-Bachiller, 1986. "Discontiguous Urban Growth and the New Urban Economics: A Review," Urban Studies, Urban Studies Journal Limited, vol. 23(2), pages 79-104, April.

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