ABSTRACT
This chapter is concerned with the public sector. It explains the change in the geography of the city from public goods either distributed uniformly in space or distributed as externalities has been derived. The geography of the city is determined in part by the mix and scope of such public goods. A spatially uniform public good will introduces into the Consumption Theory of Land Rent; principles from the analysis will subsequently be used in the analysis of externalities. The key to deriving the effect from the provision of the public good in the spatial setting was in the definition of the marginal utility of public good (MUPG). When the public good is a complement to private land consumption, then the MUPG of households that reside at the urban margins where land consumption is greater was argued to be greater than the MUPG of households who reside in the urban core.
