Metropolitan Studies Program Series
Economic Policy | Economics | Public Affairs, Public Policy and Public Administration | Public Policy
Despite the predominance of homeownership, general equilibrium urban models assume that rents flow to absentee landlords or are redistributed to residents. This paper explores open urban models with more realistic forms of land ownership, namely ownership of shares in a land corporation and individual home ownership. These models, which produce capital gains and losses for residents, can yield different comparative static results than previous open models, with post-shock bid functions that are flatter at the periphery or steeper at the center. Moreover, shocks to these models cannot in general be analyzed without knowing the characteristics of all the urban areas in the system.
Ross, Stephen and Yinger, John, "Where Do the Rents Go? Land Ownership in an Urban Model" (1996). Center for Policy Research. 451.
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Metropolitan studies program series occasional paper no.182