William Alonso

Bio: William Alonso is an academic researcher from Harvard University. The author has contributed to research in topics: Land use & Land information system. The author has an hindex of 11, co-authored 15 publications receiving 5341 citations.

A theory of the urban land market

Abstract: This chapter presents a non-mathematical overview, without trying to give it full precision, of the long and rather complex mathematical analysis, which constitutes a formal theory of the urban land market. It is a static model in which change is introduced by comparative statics. And it is an economic model: it speaks of economic men, and it goes without saying that real men and social groups have needs, emotions, and desires, which are not considered. The chapter considers the urban businessman, who, we shall assume, makes his decisions so as to maximize profits. A bid rent curve for the businessman, then, will be one along which profits are everywhere the same: the decisionmaker will be indifferent as to his location along such a curve. The household differs from the farmer and the urban firm in that satisfaction rather than profits is the relevant criterion of optional location.

Five bell shapes in development

Abstract: The five bell-shaped curves (economic growth, social inequality, regional inequality, geographic concentration, and population growth) are not iron laws of history. They are only stylized facts, a useful heuristic which can suggest interesting questions. As the rich or developed countries enter fully into the realm of the right-hand tail of these curves, we meet a number of surprises. We would do well to examine their interactions because they are likely to be interesting and their study fruitful.

Predicting best with imperfect data

Abstract: THE EFFECT OF ERRORS AND THEIR PROPAGATION IN MODELS FOR PREDICTION IS DISCUSSED AND SUGGESTIONS MADE FOR STRATEGIES FOR THE SELECTION AND CONSTRUCTION OF MODELS WHICH ARE INTENDED FOR APPLIED WORK. TWO TYPES OF ERROR ARE DISTINGUISHED: ERROR OF MEASUREMENT AND ERROR OF SPECIFICATION. A QUANTITATIVE MODEL PUTS TOGETHER VARIOUS NUMBERS OBTAINED BY MEASUREMENT, AND COMBINES THEM THROUGH ALGEBRAIC OPERATIONS. A WELL-KNOWN FORMULA EXISTS FOR ESTIMATING THE ERROR IN THE OUTPUT WHICH RESULTS FROM THE PROPAGATION OF ERRORS IN THE INPUT. THIS FORMULA IS PRESENTED AND DISCUSSED. SIMPLE AND COMPLEX MODELS ARE DISCUSSED AND EXAMPLES GIVEN. A STATISTICAL ARGUMENT IS ADVANCED FOR A DISTINCTION BETWEEN MODELS FOR FUNDAMENTAL RESEARCH AND MODELS FOR APPLIED WORK. IF THERE IS MERIT TO THE STATISTICAL ARGUMENT, IT FOLLOWS THAT WE SHOULD HAVE RESEARCH GROUPS IN UNIVERSITIES AND OTHER CENTERS WORKING ON COMPLEX MODELS, WHILE OPERATIONAL AGENCIES WOULD BE WORKING WITH SIMPLIER AND SAFER MODELS. A TECHNIQUE IS SUGGESTED FOR ESTIMATING THE VALUE OF IMPROVEMENTS IN DATA.

Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition

Abstract: A class of differentiated products is completely described by a vector of objectively measured characteristics. Observed product prices and the specific amounts of characteristics associated with each good define a set of implicit or "hedonic" prices. A theory of hedonic prices is formulated as a problem in the economics of spatial equilibrium in which the entire set of implicit prices guides both consumer and producer locational decisions in characteristics space. Buyer and seller choices, as well as the meaning and nature of market equilibrium, are analyzed. Empirical implications for hedonic price regressions and index number construction are pointed out.

Micro-Foundations of Urban Agglomeration Economies

Abstract: This handbook chapter studies the theoretical micro-foundations of urban agglomeration economies. We distinguish three types of micro-foundations, based on sharing, matching, and learning mechanisms. For each of these three categories, we develop one or more core models in detail and discuss the literature in relation to those models. This allows us to give a precise characterisation of some of the main theoretical underpinnings of urban agglomeration economies, to discuss modelling issues that arise when working with these tools, and to compare different sources of agglomeration economies in terms of the aggregate urban outcomes they produce as well as in terms of their normative implications.

Multi-Agent Systems for the Simulation of Land-Use and Land-Cover Change: A Review

Abstract: This paper presents an overview of multi-agent system models of land-use/cover change (MAS/LUCC models). This special class of LUCC models combines a cellular landscape model with agent-based representations of decisionmaking, integrating the two components through specification of interdependencies and feedbacks between agents and their environment. The authors review alternative LUCC modeling techniques and discuss the ways in which MAS/LUCC models may overcome some important limitations of existing techniques. We briefly review ongoing MAS/LUCC modeling efforts in four research areas. We discuss the potential strengths of MAS/LUCC models and suggest that these strengths guide researchers in assessing the appropriate choice of model for their particular research question. We find that MAS/LUCC models are particularly well suited for representing complex spatial interactions under heterogeneous conditions and for modeling decentralized, autonomous decision making. We discuss a range of possible roles for MAS/LUCC models, from abstract models designed to derive stylized hypotheses to empirically detailed simulation models appropriate for scenario and policy analysis. We also discuss the challenge of validation and verification for MAS/LUCC models. Finally, we outline important challenges and open research questions in this new field. We conclude that, while significant challenges exist, these models offer a promising new tool for researchers whose goal is to create fine-scale models of LUCC phenomena that focus on human-environment interactions.

The Geographic Determinants of Housing Supply

Abstract: I process satellite-generated data on terrain elevation and presence of water bodies to precisely estimate the amount of developable land in U.S. metropolitan areas. The data show that residential development is effectively curtailed by the presence of steep-sloped terrain. I also find that most areas in which housing supply is regarded as inelastic are severely land-constrained by their geography. Econometrically, supply elasticities can be well characterized as functions of both physical and regulatory constraints, which in turn are endogenous to prices and demographic growth. Geography is a key factor in the contemporaneous urban development of the United States.

Economics of agglomeration

Abstract: We address the fundamental question arising in geographical economics: why do economic activities agglomerate in a small number of places? The main reasons for the formation of economic clusters involving firms and/or households are analyzed: (i) externalities under perfect competition; (ii) increasing returns under monopolistic competition; and (iii) spatial competition under strategic interaction. We review what has been accomplished in these three domains and identify a few general principles governing the organization of economic space. A few alternative, new approaches are also proposed. J. Japan. Int. Econ., December 1996, 10 (4), pp. 339–378. Kyoto University and University of Pennsylvania; and CORE, Universite Catholique de Louvain and CERAS–ENPC (URA 2036, CNRS).