ABSTRACT
This chapter shows that agreement between the static model and the long run equilibrium model developed is possible only under very restrictive assumptions which require nonmarket land use controls. It argues that a spatiotemporal decentralized planning procedure which agrees with the static model does exist. The chapter explores the essential aspects of competitive residential land speculation. It examines and the conditions for households’ equilibrium are derived. The chapter suggests that the speculative market can be controlled by issuing building permits in order to assure that the supply of housing units at any point in time does not exceed the demand. It aims to develop a linear programming formulation of the socially efficient land development pattern which maximizes the present value of the urban land. The chapter describes a graphical representation of the efficient development pattern is developed under the assumption of continuous population growth.
