Dynamics and comparative statics in the theory of residential location

This paper introduces a dynamic adjustment mechanism of residential boundaries among a finite number of household classes in a circular city model. First we derive some meaningful conditions for all the residential boundaries to be locally stable. Then, assuming that the stability conditions are satisfied, we examine the comparative static properties of equilibrium boundary positions, e.g., the effects of changes in a land tax, an income subsidy, the number of households, etc.