The problem of land value betterment: a simplified agent-based test
- Publisher:
- SPRINGER
- Publication Type:
- Journal Article
- Citation:
- Annals of Regional Science, 2016, 57, (2-3), pp. 413-436
- Issue Date:
- 2016-11-01
Closed Access
| Filename | Description | Size | |||
|---|---|---|---|---|---|
| Wang-Baddeley2016_Article_TheProblemOfLandValueBettermen.pdf | Published version | 1.3 MB |
Copyright Clearance Process
- Recently Added
- In Progress
- Closed Access
This item is closed access and not available.
In this paper, we employ behaviour-driven cellular automata as a simplified agent-based modelling approach to test the seminal Coase theorem, with a policy focus on the land value betterment effect of urban infrastructure provision. Four prototypical development regimes are identified from international practice: (1) the private developer-oriented Metroland model dating back to the suburbanisation of London in the nineteenth century England; (2) the private household-led special district model, which can be observed in many contemporary US suburbs; (3) the public planning-regulated model, as featured in most post-war European welfare state countries, including the present-day UK; (4) the public state-as-developer model, which characterises what has been taking place in China. A repeated analysis of variance (ANOVA) based on the results of a large number of cellular automata simulations suggests no significant difference between models I and II in terms of their welfare outcomes measured by aggregate utility. However, models III and IV are both found to generate significantly less welfare than models I and II, under strict assumptions of zero transaction costs, perfect information, perfect capital markets and perfect competition.
Please use this identifier to cite or link to this item: