Town planning and welfare maximization: A methodological approach

Abstract

H. Ben-Shahar, A. Mazor and D. Pines (1969) Town planning and welfare maximization: A methodological approach, Reg. Studies 3, 105–113. The task of the town planner is to suggest plans which maximize social welfare objectives under a given list of constraints. The paper first discusses the nature of some of the constraints and the social welfare criteria, and defines the “loci of efficient plans”. This is an n dimensional surface consisting of plans which for any combination of n-1 criteria with given values, provides the maximum feasible value to the remaining n th criterion. In this respect the paper also discusses how to handle both monetary and non-monetary (but ordinal) welfare criteria. In view of the complexities of data, constraints and criteria, a solution of efficient plans may be determined by mathematical programming. The paper develops a linear programming model for a simultaneous solution for future sub-periods of land use for residence and employment as well as for transportation. On the basis of the mathematical solution, and particularly of the shadow prices of the constraints and activities, the paper sets a basis for a cost-benefit analysis for policy decision making. In particular problems like land prices, population size, renewal programs, and a cost-benefit of social and political constraints are discussed. Finally an approach to analysis of uncertainty is schemed.