Estimation of Optimal Compact City Based on Municipal Revenue and Expenditure

Abstract

This paper analyzes the effects of compact city policy on municipal finance from the view point of sustainability. Unlike previous work, which dealt with either revenue or expenditure, this paper deals with both factors simultaneously. This is because the sustainability of municipal finance is not secure even if the municipal government reduces municipal expenditure when revenue is decreasing.

This paper strongly supports the compact city policy from the view point of municipal finance efficiency.