Abstract
The structure of modern cities is characterized by the uneven spatial distribution of people and activities. Contrary to economic theory, it is neither evenly distributed nor entirely monocentric. The observed reality is the result of various feedbacks in the context of the interactions of attraction and repulsion. Heretofore, there is no agreement concerning the means to measuring the dimensions of these interactions, nor the framework for explaining them. We propose a simple model and an associated method for testing the interactions using residential land values. We claim that land values reflect the attractiveness of each location, including its observable and unobservable characteristics. We extract land values from prices of residences by applying a dedicated hedonic model to extensive residential real estate transaction data at a detailed spatial level. The resulting land values reflect the attractiveness of each urban location and are an ideal candidate to measure the degree of centrality or peripherality of each location. Moreover, assessment of land values over time indicates ongoing centralization and peripheralization processes. Using the urban structure of a small and highly urbanized country as a test case, this paper illustrates how the dynamics of the gap between central and peripheral urban areas can be assessed.
Highlights
Karima Kourtit and Jaewon LimThe structure of modern cities is characterized by the uneven spatial distribution of people and activities
We have proposed an endogenous growth model that does not presume equilibrium and that generates various grades of polarity [2,3,4,5]
As opposed to traditional measurements of individual aspects associated with the dwelling in a specific location, generally calculated using hedonic analysis, the land value represents a comprehensive assessment of its overall qualities
Summary
Karima Kourtit and Jaewon LimThe structure of modern cities is characterized by the uneven spatial distribution of people and activities. Traditional economic theory suggests that either agglomeration forces and economies of scale will create a core region that dominates urban geography or that equilibrating forces will eliminate polarization. Contrary to economic theory, the spatial distribution of people and activities is neither evenly distributed nor entirely monocentric. This is the well-known Lucas paradox applied to an urban context [1]. We have proposed an endogenous growth model that does not presume equilibrium and that generates various grades of polarity [2,3,4,5]. The observed reality is the result of various feedbacks in the context of the interactions of attraction and repulsion forces
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