Abstract
This article examines where and how to impose floor area ratio (FAR) regulations in the presence of negative externalities engendered in population density, e.g., traffic congestion and noise, using a simple static closed city model. Results indicate that FAR regulation is the second-best policy and that there is a need for “minimum FAR regulations,” in addition to the currently used “maximum FAR regulations.” Thus, the imposition of only maximum FAR regulations, a practice common in actual city planning, is concluded to be insufficient for a closed city.
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Kono, T., Kaneko, T. & Morisugi, H. Necessity of minimum floor area ratio regulation: a second-best policy. Ann Reg Sci 44, 523–539 (2010). https://doi.org/10.1007/s00168-008-0269-0
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DOI: https://doi.org/10.1007/s00168-008-0269-0