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Amenity Effect Or Supply Effect? Metropolitan Amenities And Their Interaction With Housing Supply, Kwame N. Donaldson

Economics Dissertations

Standard models in urban economics assume that the boundary of an urban area will expand as long as the present value of land for urban uses is greater than the present value of land for rural uses. Under this assumption, the boundary of the urban area is endogenously determined by the rent paid to rural landowners. But this assumption is not realistic. The physical expansion of many major urban areas in the United States is impeded by an exogenous boundary. For example, geographic growth of the three most populated metropolitan areas in the country is limited by an ocean or …