Arbeitspapier

Optimum City Size: The External Diseconomy Question

This paper discusses whether market-achieved city size is greater or less than optimum city size. The divergence between optimum and achieved city size is due to external diseconomies such as pollution. Imposing an optimal tax on pollution may not, as is commonly thought, cause even an initial reduction in output of the polluting good. Moreover, the paper shows, even if output initially falls with optimal taxation, the corresponding reduction in pollution and shift toward consumption of non-polluting goods will make city inhabitants better off. The increased welfare of city inhabitants will result in immigration to the city.

Language
Englisch

Bibliographic citation
Series: Queen's Economics Department Working Paper ; No. 91

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Henderson, J.V.
Event
Veröffentlichung
(who)
Queen's University, Department of Economics
(where)
Kingston (Ontario)
(when)
1972

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Henderson, J.V.
  • Queen's University, Department of Economics

Time of origin

  • 1972

Other Objects (12)