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.
Original language | English |
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Pages (from-to) | 413-436 |
Number of pages | 24 |
Journal | Annals of Regional Science |
Volume | 57 |
Issue number | 2-3 |
Early online date | 25 Jul 2015 |
DOIs | |
Publication status | Published - 1 Nov 2016 |
Keywords
- Infrastructure Development
- Coase Theorem
- Agent-based Modelling
- Behaviour-drive Cellular Automata
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Profiles
-
Dr Yiming Wang
- School for Policy Studies - Senior Lecturer in Cities and Public Policy
Person: Academic