An Agent Based Model of A Thinly Traded Land Market in an Urbanizing Region

We have developed a model of a multi-period agent-based land market based on the theory of thinly traded land markets. This new model builds upon the stylized fact that land demand (supply) decreases (increases) across the urban-rural gradient. The effect of heterogeneous amenities are also included in the model. We simulated the model for a growing urbanizing region and investigated the evolution of land development patterns. We found that this simple model can replicate/reproduce many interesting observed features. For instance, scattered development can emerge in transitory periods due to the land demand (supply) decreases (increases) over the urban-rural gradient. Furthermore, increases in transportation costs and the number of in-migrants tend to decrease both the intensity and persistence of scattered development.

Automated summary

The model of a multi-period agent-based land market developed is based on the theory of thinly traded land markets, considering the decrease/increase of land demand (supply) across the urban-rural gradient. Simulation of the model in a growing urbanizing region showed that factors like transportation costs and in-migration can influence the intensity and persistence of scattered development patterns.