Abstract

Several recent papers in the literature have reformulltlated the nature of equilibrium in IFiebout mo(lels by alSSlIuim`ing an exogenous number of communities, inflexible commullity l)OU(alaries, anti in pirticular inactive lantlowners and developers. Ihis paper argues that these assumptions are unwarranted and reSul1t iIn in(eterminate solutions and incorrect analyses. Determinate lOn1g-rUn1 solutions require equilibrium in intercommui land markets, which in turn require giving lantlowners and/or entrepreneurial (leveloelers an active role in the models. The role of politics in these models and its juxtaposition with entrepreneurial activities are also analyzed.

Full Text

Published Version

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.