Urban Industrial Structure, Housing Patterns, and Land Policy: A General Equilibrium Model
摘要
This chapter develops a general equilibrium model to discuss the relationship among the urban industrial structure, housing patterns and land policies. The basic idea of the model is that the industrial structure of a city determines the housing patterns, and the government's land policies greatly affect the supply of housing. If the government ignores the characteristics of the industrial structure when making land supply decisions, it is very likely to cause inefficient land use and loss of output and public income. Using this model, this chapter analyzes the choices of different housing patterns, the determination of the optimal land allocation, and the efficiency of land use. The analysis shows that any deviation of the housing land supply structure from the market equilibrium will lead to a decline in land use efficiency, but the degree will vary. On the contrary, adjusting towards the market equilibrium level can achieve a Pareto improvement. This chapter also discusses the factors that hinder effective adjustment in practice, such as land use rigidity, incomplete information, and opportunistic behavior of the government. This framework helps decision-makers consider land, housing, labor and industry as a whole and coordinate different policy goals.