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Interacting agents, spatial externalities and the evolution of residential land use patterns

Irwin, E. G., Bockstael, N. E.·2002·Journal of Economic Geography

Abstract

We develop a model of land use conversion that incorporates local spillover effects among spatially distributed agents. The model is used to test the hypothesis that fragmented patterns of development in rural‐urban fringe areas could be due to negative externalities that create a ‘repelling’ effect among residential land parcels. Identification of the hypothesized interaction effect is complicated by unobserved, spatially correlated heterogeneity. Using an identification strategy that bounds the interaction effect from above, we find empirical evidence that is consistent with a theory of negative interactions among recently developed residential subdivisions in exurban Maryland. The result offers an alternative explanation for low density sprawl to that which is frequently posited in the economics literature and one with potentially quite different efficiency implications.

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Authors
Irwin, E. G., & Bockstael, N. E.
Venue
Journal of Economic Geography
Published
2002-01-01
Volume
2
Issue
1
Pages
31-54
ISSN
  • 1468-2702 (ISSN-L)
  • 1468-2710
OpenAlex
W2010732260
Cited by
397
References
0
FWCI
38.29
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Interacting agents, spatial externalities and the evolution of residential land use patterns. https://app.cochat.ai/papers/10.1093/jeg/2.1.31
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Irwin, E. G., & Bockstael, N. E. (2002). Interacting agents, spatial externalities and the evolution of residential land use patterns. Journal of Economic Geography. https://doi.org/10.1093/jeg/2.1.31

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.