Masahisa Fujita

Abstract

The purpose of this paper is to study the solution of Problem A under more ge-neral assumptions. In particular, though it is assumed in Fujita (1976a) that the de-mand for buildings of each type is nondecreasing with respect to time, this assumption is abandoned in this paper. As will be explained in section 7, this generalization is also necessary to obtain the solution of Problem C in Fujita (1976b) by utilizing the solution of Problem A.In this paper, we study only the optimal planning problem of urban land use within the framework of Problem A. But, note that, for each optimal planning prob-lem within the framework of Problem A, there exists a corresponding market equilib-rium problem which has the same solution (see Proposition 1 in Fujita, 1976b). Hence, the reader must keep in mind that each characteristic of the solution which we N obtain in this paper is also a characteristic of the solution for an appropriate market equilibrium problem.

Masahisa Fujita, Department of Regional Science, University of Pennsylvania, Philadelphia, USA