Abstract
Upon reviewing previous models for predicting regional development impact of transportation investment, the author shows that most of the notable models did not pay due attention to the concept of location rent, despite its potential usefulness and theoretical justification.
The author presents interim results of a model currently being developed. In this model, location rent is considered to be a representative indicator of accessibility to various opportunities. On the basis of actural interregional flow data of commodities, location rent has been derived, and its consistency with the observed land value has been tested. The results are a partial success. The derived location rent has been confirmed as an explanatory variable of the land value. But, it has also been shown that agglomeration has an overwhelming impact on land value.
