Optimum product variety in urban areas

Article Abstract:

A monopolistically competitive type of business in which companies manufacture differentiated products subject to growing returns to scale technology is superimposed on a monocentric residential land-use model. The principle result is that, assuming an isoelastic demand structure, market equilibrium will relate to a first-best optimum if companies have shares in land rents, and if population is set optimally. This finding contrasts with existing literature on monopolistic competition and product diversity in which it is suggested that market equilibrium is a second-best optimum. A corrective subsidy paid to companies and financed from a tax on differential and rents will cause replication of the planning solution if companies do not have shares in land rents.

Metropolitan areas, Supply and demand, Monopolistic competition

---

Taxes, pollution, and optimal abatement in an urban economy

Article Abstract:

The effect of pollution abatement and optional ways of financing it is examined for consumer renters and absentee property owners by means of a closed urban spatial model. A relatively general pollution-or-amenity distribution function and an explicit utility function are employed. Incidence effects are created for externally financed abatement, and for its financing through an excise and an income tax. The outcome with a property tax is also considered. Results of consumer utility maximization under an income tax regimen are contrasted with those under an excise regimen, and both of these are then compared in turn with the outcome when a benefit-cost approach is utilized.

Taxation, Pollution, Income tax, Control, Landlord and tenant, Landlord-tenant relations, Real property tax, Real property taxes, Consumption taxes

---

Similar abstracts:

• Abstracts: Effects of the property tax in urban areas. Effects of governmental structure in urban areas. Nonubiquitous transportation and urban population density gradients
• Abstracts: On the provision of excludable public goods. Exclusion and moral hazard: A further analysis. Misperceived job hazards and welfare
• Abstracts: Bidding models of housing markets. The optimal design of housing allowances. Shelter allowances in a general equilibrium setting: a model and some situations
• Abstracts: On the emergence of cities. Simulating the impacts of economic programs on urban areas: the case of unemployment benefits

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.