ABSTRACT
City planning generally is associated with being a complex tangle of laws and regulations. In practice, the particular laws in force within a community are the result of tug-o'-war battles and short-term collusion between special interest groups. This chapter demonstrates the effect that several pure planning scenarios have upon the internal spatial structure of the city and household welfare. The implementation of pure planning policies does not necessarily translate into increasing household welfare. The broad categories of the scenarios are restricting the expansion of the fringe, subsidizing the cost of conversion of nonurban land utilization and adjusting land consumption or land rent to conform to nonmarket behavior. The planning policy may or may not maximize aggregate social welfare. In the process of maximizing aggregate social welfare, otherwise identical households may result in having different levels of individual welfare depending upon the relative spatial location.
