Political-Economic Analysis of Optimal Urban Management

点击翻译按钮获取中文摘要

The shortcomings of the literature on political-economic model of urban management are that ; the role of the poor in urban production is not discussed ; spatial aspects such as city size or land constraints are not taken into consideration the present research intends to overcome those drawbacks, Setting a city with residents of two classes, it is hypothesized that developers as landowmers in a city decide how much land is renteal to whom at what level of rent so as to maximize rental revenue. Only rich people are concerned with urbarn enrvironment quality which depends on the ratio of the number of the poor to that of the richi in other words, the rich perceive the negative neighborhood externality from increased number of the poor in a city, This negative externality works to denease the bid-rent of the rich. On the other hand, the income of the rich increases with the amount of cheap labor supplied by the poor and thereby the bid-rent of the rich becomes higher. Therefore, from the viewpoint of the rich, There exists an optimal population composition such that both classes reside, in a city. Among the comparative static analyzes, of interest is the result of an increase in the extent of negative neighborhood externality. The analysis shows that when the poor's composition rate is high, an increase in the deteriaration rate of urban environment due to the high density of the poor might lead to increasing of the poor's density, thereby furthering urban environmental deterioration as a result. In order to avoid farther deterioration of unban environment, government, whether central or local, should provide better public housing, improve urban transportation systems, presrve sufficient open spaces, and promote education and public health programs.