Welfare Effects of Floor Area Ratio Regulation on Landowners and Residents with Different Levels of Income

摘要: Abstract This paper explores how Floor Area Ratio (FAR) regulations affect residents with income disparity and absentee landowners in a congested closed city. Theoretical results show that (1) an increase FAR central zone may harm the utility of suburban due to residential segregation pattern heterogeneous people whereas it always increases city homogeneous households, (2) changes land rents depends on current relative location where increases. Numerical clarify effects optimal landowners. In addition, theoretical result denoted above is numerically verified. Furthermore, found gives higher benefits high households than low regardless pattern.