Aggregate Land Rents, Expenditure on Public Goods, and Optimal City Size
“This paper explores the relationship between aggregate land rents and public expenditure in a residential urban economy.”
The Henry George Theorem – that in cities of optimal size aggregate land rents equal expenditures on public goods – holds under three conditions: (i) for all large economies in which (ii) the spatial distribution of economic activity is Pareto optimal and in which (iii) differential land rents are well defined.
Richard J. Arnott
Land Value Tax