A model of population distribution,traffic congestion,and neighborhood crowding in a circular city

An idealized static equilibrium model of a circularly symmetric city is presented. The model allows one to compute the spatial distribution of residences, given certain simple and plausible assumptions about the “costs” of transport, housing and neighborhood crowding. The model is chosen so as to guarantee that in first approximation, the residential population distribution which would be considered optimal by a perfect planner is identical to the distribution reached in a push-shove, laissez-faire equilibrium. This aspect of the construction is shown to be related in a simple way to the familiar “external diseconomy” situation in which a free resource is allocated among alternative uses by equating average, rather than marginal products. The existence of an infinite class of models in which the associated planner's optimum and laissez-faire equilibria are equivalent follows naturally from the standard theory of the private and social costs of highway congestion. The model leads naturally to exponentially falling population distributions which exhibit an “urban-suburban” dichotomy, to a particular overall city size, and to an optimal allocation of land between transport and residential uses.