Abstract
This paper presents an empirical study on the optimality of population distribution within the Tokyo metropolitan area. By taking into account the effects of agglomeration economies and diseconomies on the urban business firms' and households' behaviour, a benefit function and a cost function are obtained that are dependent on the distribution of urban population. Using statistical data from the Tokyo metropolitan area, estimates are made of these agglomeration-related benefit and cost functions, and the related population density functions as well. A comparison between the estimated benefit and cost functions shows that the distribution of population is optimal around the central and peripheral cities but non-optimal in between them, and the global city size of the whole area is optimal.
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