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The Influence of Recreation and Amenity Benefits of Open Space on Residential Development Patterns

The kind of open space benefit, recreation, or amenity, in our spatial city model determines in part how open space influences residential development. Our model also determines the exact total social benefits of open-space policies by summing together the change in household welfare and landowner profits. Simulations examine open space benefit improvements, additional open space, housing durability, and migration, and the location patterns of two income groups. We show that the high income group is not attracted to open space if higher income makes housing demand rise faster than recreation demand. (JEL R14, Q51)