Managing Urban Growth for the Efficient Use of Public Infrastructure: Toward a Theory of Concurrency

Abstract

In this article, the authors develop three dynamic models of urban growth with a focus on the efficient utilization of lumpy urban infrastructure. First, the authors show that the optimal growth rate depends on the rate at which infrastructure capacity is consumed when public service levels are variable and produced with a fixed stock of public infrastructure. Second, it is shown that the optimal growth rate depends on the rate of increase in marginal public service costs when public service levels are fixed and provided with variable inputs and a fixed stock of infrastructure. Third, the authors examine the optimal growth path when service levels are fixed and infrastructure is expanded in lumpsum increments. Under these conditions, the authors show that the optimum urban growth path depends on the level and timing of investments in urban infrastructure and that efficiencies can be gained by coordinating public and private investments in urban development.