Transportation and Urban Land Values: A Review of the Theoretical Literature

Abstract

This paper is concerned with the relationship between transportation costs and urban land values. It begins with a general consideration of the role and importance of transport costs in the formation of cities. This is followed by an analysis and critique of the theoretical literature linking transport developments and urban land values. The discussion proceeds from simpler to more complex models in an attempt to synthesize existing results, delineate the assumptions upon which the arguments are founded and, at the same time, indicate important omissions in the analyses and areas for much needed extension. The closing section summarizes the main findings and presents suggestions for additional research.