PLN 3 - Prelim Exam Part 3

Theory of the Firm

Location of Firms/Industrial Use. Location decisions used to minimize transport cost

Least Cost Approach

Location in terms of minimization of factors of cost

Market Area Analysis

Emphasis on demand on market factors

Profit Maximization Approach

The logical outcome of the two

Alfred Weber (1909)

Least Cost Approach who invented this?

Weber’s Assumptions

Unit of study is a single isolated country

• Homogeneous in climate

• Concentration of consumers at certain centers

• Conditions of perfect competition- access to unlimited market

Transport cost

To be directly proportional to distance moved and weight carried

Labor cost

Can attract a firm to a location other than least transport cost if the savings in labor cost per unit of output are greater than the extra transport cost per unit involved.

Agglomerative and Deglomerative factors

Local factors which determine the degree of dispersion within the general framework

Economies of agglomeration 

The savings in unit costs that may accrue to individual firms when a large enough number of them locate in one city

Diseconomies of Agglomeration

The concentration of population of economic activity in one place either raises the real cost of production by requiring more inputs

Market Area Analysis – A. Losch (1954)

The optimum location is the place of maximum profits, where revenue exceeds costs by the largest amount.

Profit Maximization Approach

In practice, both costs and revenue vary with location and the optimum location is the one which yields the greatest profit.

Central Place Theory - Walter Christaller (1933)

Under ideal circumstances, he argued, central places of the same size and form will become established at roughly equal spacings with secondary or lower-order centers in between, each of which in turn may be connected to smaller units.

central place

A ___________ is a settlement providing services for the population of its hinterland

Threshold Population

Is the minimum population necessary to support the service activity

Market Range of a Service Activity

 Is the distance which people are willing to travel to reach the service

Nesting Pattern

Is the infiltration of a lower order center within a high order center

Higher Order Places

Offer goods, have more establishments and business types, larger population, tributary areas and tributary population

Low Order Places

Provide only low order goods to low order tributary areas.

Growth Pole Theory

The core idea of the ________ is that economic development, or growth, is not uniform over an entire region, but instead takes place around a specific pole.

Growth Pole

Occurs in economic space

Growth Center/Point

Refers to spatial location

Concepts of leading industries and propulsive firms

States that at the center of growth poles are large propulsive firms 

Concept of Polarization

States that the rapid growth of the leading industries (propulsive growth) induces the polarization of other economic units

Concept of Spread Effect 

States that in time the dynamic propulsive qualities of the growth pole radiate outwards into the surrounding space

Theory of Concentric Zones - Ernest W. Burgess (1929)

• Zone I — the CBD, lies at the centre of the city.

• Zone II — is in transition. It is the crowded, multi-occupied zone of the city first invaded by migrants.

• Zone III — are the working men's houses, the area of second generation immigrants,

Sector Theory - Homer Hoyt (1939)

The view that housing areas in a city develop in sectors along the lines of communication, from the CBD outwards.

Multiple Nuclei Theory - Chauncy D. Harris, Edward L. Ullman (1945)

A model of town growth based on the fact that many towns and nearly all large cities grow about many nuclei rather than around a simple CBD

Urban Realms Theory – James E. Vance, Jr. (1964)

Each realm is a separate economic, social and political entity that is linked together to form a larger metro framework.

Cost-Benefit Analysis (CBA)

Requires the comparison of project costs and benefits using economic prices

Cost-Effectiveness Analysis 

Developed as a tool for program evaluation where it is difficult, if not impossible, to quantify the costs and benefits in monetary terms

Sensitivity or Break-Even Analysis

Alters some of the values previously assumed to be constant within an evaluation in order to see whether how much such changes would affect the outcome.

Goals-Achievement Matrix Method

Follows a five-step evaluation process:

a. List the objectives

b. Develop measures of each objective

c. Weight each objective

d. Evaluate the way each alternative meets each objective

e. Select the best alternative

Planning Balance Sheet Method

Also follows the 5-step evaluation process but differs from the goals-achievement method in several respects.

• Using a comparable matrix, the balance sheet approach measures costs and benefits 

Impact Analysis

The assessment and evaluation of the impacts of alternative options has always been an integral part of planning analysis.

Environmental Impact Analysis

Effects of policies or projects on air and water quality, plant life, animals, and human beings (social impact assessment).

Social Impact Analysis

Undertaken to ensure the project is responsive to the needs of the beneficiaries and the concerns of the group of people likely to be affected by the project

Fiscal Impact Analysis 

Concentrates on the costs and benefits (in monetary terms) to the governmental unit concerned

Traffic Impact Studies 

Assesses the effects that a particular development’s traffic will have on the surrounding transportation networks

Ex-Post Evaluation 

Following implementation, it is possible to invest time and resources

The Oregon Model 

One of the first places in the US to experience the proliferation of community-based visioning

Charrettes

Involves a multidisciplinary team of professionals developing all elements of a plan.

Electronic Sketchboard 

This simulates traditional pen and paper sketching and provides additional capabilities of layering, tracing, and coloring.

Geographic Information System

Represents a move from paper map to a digital one empowered with spatial analysis, navigation, and visualization capabilities.

Hypermedia

A new computerized environment that integrates multiple media, such as maps, photographs, videos, and sounds on a stand-alone PC.

Subdivision Regulation

Controls the division of a tract of land for building and development purposes

Zoning Regulations

Zoning ordinance divides a local government’s jurisdiction into districts or zones.

Conditional-Use or Special-Use Permits 

Provide a way to allow a land use that would not normally be allowed in a particular zoning district

Planned-Unit Development (PUD)

Regulations typically merge zoning and subdivision controls, allowing developers to plan and develop a large area as a single entity

Cluster Development or Conservation Design

Involves arranging building lots on a portion of a parcel and while retaining a certain percentage of the parcel as open space, i.e., a cluster zoning ordinance

Floating Zones

Described in the zoning ordinance in such a way that its characteristics and the requirements for its establishment are defined, but its location remains undesignated

Overlay Zoning Districts

These districts are superimposed on top of portions of one ore more underlying general use-based zoning district allow application of additional standards addressing a special purpose

Performance Standards 

These standards, which were initially used to control industrial uses, try to control the external effects of development through standards directly related to its operational characteristics, i.e., general categories 

Incentive Zoning 

Developers are awarded additional development capacity in exchange for a public benefit.

Traditional Neighborhood Development (TND)

A style of development that works to emulate man of the features or urban neighborhoods of 50 to 100 years ago.

Transit-Oriented Design (TOD) 

Modernized by Calthorpe and Kelbaugh. Creates nodes at intervals most efficient for rail transportation

Form-based Zoning 

Approach seeks to regulate building form rather than, or in addition to, land use

Transect-Based Code 

Based on a series of habitats, or “ecozones” on a continuum from wilderness to urban core.

Development Impact Fees

A one-time fee or charge on new development projects imposed by local governments to cover capital expenditures by the governmental unit on the infrastructure required to serve the new development

Urban Growth Areas

An area delineated in a comprehensive plan within which urban development is encouraged and outside of which urban development is discouraged.

Transfer of Development Rights (TDR) 

The yielding of some or all of the right to develop or use a parcel of land in exchange for a right

Purchase of Development Rights (PDR)

Allows owners of land meeting certain criteria to sell the right to develop their property.

Conservation Easements

A egally binding contract in which a landowner voluntarily restricts the rights to use and develop land, as well as the right to sell or convey mineral rights

Scenic Easements

Are a subset of conservation easements. 

Urban Viewshed

Implemented as a standalone ordinance, or it can be incorporated in other plans, such as a community’s zoning regulations as an overlay zone or a modification to existing zones

Capital improvements Programs (CIP)

The purchase or construction, major repair, reconstruction, or replacement of capital items

Comprehensive Land Use Plan

Contains the Vision/Mission; Goals, Objectives, Strategies; the Concept/Structure Plan (text and map); the Land Use Plan (text and map); Priority Programs and Projects.

Zoning Ordinance (ZO)

Contains the regulations affecting uses allowed or disallowed in each zone of district

Zoning Map

Enacted by the LGU and duly ratified and authenticated by the approving body (Sangguniang Panlalawigan/HLURB) which is an integral part of the Zoning Ordinance.

Sectoral Studies 

Contain the following major sections: Demography (Physical/Environment); Social Sector (Housing, Health, Education, Protective Services, Sports and Recreation, Social Welfare

Land Suitability Analysis (LSA) 

An in-design evaluation method for planning areas that retain important natural environmental features

Carrying Capacity Analysis

The method of studying the effects of population growth and urban development on ecological systems, public facility systems, and environmental perception.

Committed Lands Analysis

Identifies locations where excess community service capacity exists and where cost of additional distribution for each new customer