Spatial growth and redevelopment with perfect foresight and durable housing

In this paper, I present a theoretical model of the spatial growth of an ur ban area with durable housing. I combine several assumptions that typically complicate the analysis: (i) housing developers have perfect foresight: (i i) the initial development and many waves of redevelopment are considered i n each developer's plan: and (iii) the closed-city assumption is made, so t hat the time path of population is exogenous and that of consumer utility i s endogenous. I still obtain explicit solutions for the spatial pattern of urban growth, and for the timing of the initial residential development and each successive redevelopment at each distance from the urban center. I co mpare perfect-foresight growth to growth with static expectations, and I ex amine the comparative statics Of both, (C) 2001 Academic Press.