Organization of Land Surrounding Airports: The Case of the Aerotropolis
31 Pages Posted: 20 Dec 2013 Last revised: 23 Dec 2013
Date Written: December 18, 2013
This paper analyzes the conditions driving the organization of the territory near airports by studying the distribution of economic activities. We consider how commercial firms, service operators, and consumers compete for land. The theoretical setting provides a grid of possible spatial structures in accordance with the degree of competition among agents. An aerotropolis (airport city) appears when the spatial sequence services area - commercial area - residential area arises as the land equilibrium outcome. Using data on the distribution of establishments in the United States (US), we analyze the existence and determinants of aeropolitan configurations. Estimations performed with parametric methods detect some interesting dynamic patterns affecting the density and distribution of activities around selected US airports.
Keywords: Aerotropolis; bid-rent function; firm activity; parametric estimation.
JEL Classification: R12, R15, L90
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