POTENTIAL OF COMPUTABLE URBAN ECONOMIC MODEL FORMALIZING BUILDING MARKET

Abstract

 Thus far, many types of computable urban economic (CUE) models have been developed and applied in practice. Most CUE models treat buildings and lands as one set, and it is assumed that the aggregate supply of building spaces in any zone is proportional to the aggregate land supply. Moreover, the modeling of building markets can be the basis of the analysis of the emergence of high-rise buildings particularly in city centers. In this study, we have developed a new CUE model that explicitly formalizes the building market and describes the endogenous supply of building spaces by a representative developer for each zone. Further, the results of both the proposed CUE and conventional CUE models are compared, and the potential of a CUE model for explicitly formalizing the building market is discussed.