This paper presents a model with rental housing vacancies in equilibrium. Because of the indivisibility and multi-dimensional heterogeneity of housing units, the market is thin. As a result, a typical household entering the market is willing to pay a premium of its most-preferred over its second...

This paper is the first in a series. Among the results are: 1) Indifference curves between premiums and payouts are not generally quasi-concave; as a result the price- and income-consumption lines are generally not continuous; 2) Accident prevention effort is generally not continuous or monotonic...

Following the work of Oates, there has recently been considerable interest in the capitalization into land values of the differences in fiscal benefits between communities. We argue the while the partial equilibrium argument which forms the basis of the capitalization hypothesis is casual and...

This paper investigates a representative landlord's profit-maximization problem in a stationary environment. The landlord must decide on the quality of his housing units at the time of construction, maintenance expenditure over the life of the building, and the time of demolition. The focus is...

This paper investigates the costs of residential height restrictions, using a numerically solvable general equilibrium model based on residential location theory. Time and money costs of travel are treated separately. Household demand recreational land and structure and actual construction cost...

Given the aims of an educational system, the relationship between inputs and output, a distribution of student ability, and a fixed budget, how should students and expenditures be allocated over classrooms? This paper focuses on peer effects and the determinants of whether streaming or mixing is...

Most previous theories of optimal city size suffer from two serious defects: they are non-spatial and partial equilibrium. This paper develops a spatial, general equilibrium theory of optimal city size. In the simplest case considered, the rule that expenditure on a Samuelsonian public good...

A multi-period, general equilibrium labour market model is developed where risk-averse workers face job-related uncertainty and labour turnover is costly. If a worker is unlucky and suffers a bad match, he quits and joins another firm. We assume that the quality of a job match is unobservable; as...

A series of recent papers investigated the desirability of randomization of insurance contracts in the presence of moral hazard. All treat a continuum of possible outcomes, which tends to obscure the intuition. In this paper, we treat the two-outcome case, employing derivations which highlight...