Urban residential renewal investments: a policy analysis employing linear programming

Abstract

The present paper develops a decision tool for planning and evaluating public spending programs aimed at improving urban residential neighborhoods. The urban residential frame-work is conceptualized in terms of four community components; housing, education, health and recreation; each component is measured by a level of facilities which grows and decays with time. A directional graph is drawn to show the relationship between the community components, the inputs in the form of public investment and the outputs or social payoffs in the form of improved facilities. The graphic model of the urban residential community is set to a linear programming format for optimizing public investment. Three applications of the model are indicated. They are: (1) determining a minimal cost split for achieving a desired social payoff level; (2) where the minimal cost is not feasible (e.g. public objection) evaluating the impacts of different sub-optimal investment plans which may be required; (3) tracing the effects of external factors on the growth and decay rates of community facilities.