Wang, Y;
Baddeley, M;
(2016)
The problem of land value betterment: a simplified agent-based test.
The Annals of Regional Science
, 57
(2)
pp. 413-436.
10.1007/s00168-015-0675-z.
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Abstract
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.
Type: | Article |
---|---|
Title: | The problem of land value betterment: a simplified agent-based test |
Open access status: | An open access version is available from UCL Discovery |
DOI: | 10.1007/s00168-015-0675-z |
Publisher version: | http://dx.doi.org/10.1007/s00168-015-0675-z |
Language: | English |
Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. © Springer-Verlag Berlin Heidelberg 2015. |
Keywords: | C63, H54, R14, R38 |
UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment |
URI: | https://discovery.ucl.ac.uk/id/eprint/1469552 |
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