Alternative Policy Variables to Influence Urban Transport Demand

Abstract

Another possible extension is to introduce the third factor of production, capital stock. Since our city is an open economy, it might be appropriate to assume that the net inflow of capital is a function of the difference between the rate of return on capital in this city and the national or international rate of return given to the city. Essentially the same analysis as in the two-factor case can be carried out if we assume a special Cobb-Douglas form of threefactor production functions. Finally, we must of course incorporate residential land use into our model and analyse the long-run interactions of industrial and residential land use in the process of urban growth in order to derive conclusions relevant to real urban problems in the long run.