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Assessing Urban Policies Using a Simulation Model with Formal and Informal Housing : Application to Cape Town, South Africa

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  • Pfeiffer,Basile Fabrice
  • Rabe,Claus
  • Selod,Harris
  • Viguie,Vincent

Abstract

Building on a two-dimensional discrete version of the standard urban economics land-use model, this paper presents a tractable urban land-use simulation model that is adapted to developing country cities, where formal and informal housing submarkets coexist. The dynamic closed-city framework simulates developers'construction decisions and heterogeneous households'housing and location choices at a distance from various employment subcenters, while accounting at the same time for land-use regulations, natural constraints, exogenous amenities, and dynamic scenarios of urban population growth and of State-driven subsidized housing. Designed and calibrated for Cape Town, the model is used to assess the impact of an urban growth boundary and of changes in the scale of subsidized housing schemes, informing a discussion of the potential trade-offs in policy objectives and of policy effectiveness.

Suggested Citation

  • Pfeiffer,Basile Fabrice & Rabe,Claus & Selod,Harris & Viguie,Vincent, 2019. "Assessing Urban Policies Using a Simulation Model with Formal and Informal Housing : Application to Cape Town, South Africa," Policy Research Working Paper Series 8921, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8921
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    Cited by:

    1. M. Picard,Pierre & Selod,Harris, 2020. "Customary Land Conversion and the Formation of the African City," Policy Research Working Paper Series 9192, The World Bank.
    2. Letrouit, Lucie & Selod, Harris, 2024. "Informal land markets and ethnic kinship in West African cities," Regional Science and Urban Economics, Elsevier, vol. 106(C).

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