The problem of land value betterment: a simplified agent-based test
Authored by Yiming Wang, Michelle Baddeley
Date Published: 2016
DOI: 10.1007/s00168-015-0675-z
Sponsors:
China Intelligent Urbanization Co-Creation Center for High Density Region
Platforms:
Microsoft Visual Basic
Model Documentation:
Other Narrative
Flow charts
Mathematical description
Model Code URLs:
Model code not found
Abstract
In this paper, we employ behaviour-driven cellular automata as a
simplified agent-based modelling approach to test the seminal Coase
theorem, with a policy focus on the land value betterment effect of
urban infrastructure provision. Four prototypical development regimes
are identified from international practice: (1) the private
developer-oriented Metroland model dating back to the suburbanisation of
London in the nineteenth century England; (2) the private household-led
special district model, which can be observed in many contemporary US
suburbs; (3) the public planning-regulated model, as featured in most
post-war European welfare state countries, including the present-day UK;
(4) the public state-as-developer model, which characterises what has
been taking place in China. A repeated analysis of variance (ANOVA)
based on the results of a large number of cellular automata simulations
suggests no significant difference between models I and II in terms of
their welfare outcomes measured by aggregate utility. However, models
III and IV are both found to generate significantly less welfare than
models I and II, under strict assumptions of zero transaction costs, perfect information, perfect capital markets and perfect competition.
Tags
Competition
Dynamics
China
Urban-development
State
United-kingdom