Assessing Urban Policies Using a Simulation Model with Formal and Informal Housing : Application to Cape Town, South Africa
Building on a two-dimensional discrete version of the standard urban economics land-use model, this paper presents a tractable urban land-use simulation model that is adapted to developing country cities, where formal and informal housing submarket...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/530301561649491827/Assessing-Urban-Policies-Using-a-Simulation-Model-with-Formal-and-Informal-Housing-Application-to-Cape-Town-South-Africa http://hdl.handle.net/10986/31987 |
| Summary: | Building on a two-dimensional discrete
version of the standard urban economics land-use model, this
paper presents a tractable urban land-use simulation model
that is adapted to developing country cities, where formal
and informal housing submarkets coexist. The dynamic
closed-city framework simulates developers'
construction decisions and heterogeneous households'
housing and location choices at a distance from various
employment subcenters, while accounting at the same time for
land-use regulations, natural constraints, exogenous
amenities, and dynamic scenarios of urban population growth
and of State-driven subsidized housing. Designed and
calibrated for Cape Town, the model is used to assess the
impact of an urban growth boundary and of changes in the
scale of subsidized housing schemes, informing a discussion
of the potential trade-offs in policy objectives and of
policy effectiveness. |
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