PLANNING TECHNIQUES

REPORT TOPICS:
Market & Supply Area Analysis Thresholds, Pure Gravity Models

SUBMITTED TO: Ms Deepa.C

SUBMITTED BY: G.Chamanthi(080209) M.Shravan (080232) B.Tech Planning III Semester JNA & FA University

PURE GRAVITY MODELS

AREAS OF APPLICATION: There are many areas of application that could be investigated
using gravity model. For example,1.how would a large area of new residential development or inner re-development affect the journey to work trip pattern and general accessibility of region 2.How would a large increasing employment resulting from the development of a new airport affect the surrounding region and what other housing and transport policies would be needed?. 3. How would the transport pattern of a area change in response to a change in transport system such as the building of a new motorway? 4. What relationships can be indentified within the urban system which can be used to assist in estimating the future level land use activities in a region? .

PURPOSE OF THE STUDY /MODEL/ ANALYSIS : This model explains particularly the
relationship between land use activities, and then predicts the likely effects of certain future planning policies on the study region .

INTRODUCTION
Gravity model was the earliest kind of interaction model by analogy with Newton Law of Gravitation expressed by the formula

F=G*(M1 M2)/D2
Where F = Force with which each mass pulls the other

m1m2 = size of masses concerned G= Universal constant D= distance between them

The gravity concept of human interaction postulates that an attracting interaction between two areas of human activity is created by the population masses of the two areas and two areas and friction against interaction caused by the intervening space over which the interaction must take place.

DESCRIPTION

The interaction between two centres of population concentration or focal varies directly with some function of the population size (N) of the two centres and inversely with some function of the distant between them.

Later development modified the expression as follows:

Qij=K (OixDj)/Tij
Where,

Qij = interaction between an origin zone I and destination zone j Oi= level of demand requirements generated or produced at the origin zone Dj= level of opportunities in zone j, that is the attractiveness of the destination Tij= gives a general measure of impedance between zone i and zone j K= constant of proportionality. Two basic cases can be distinguished, constrained and unconstrained cases.

Uncostrained case: This kind of interaction model is the earliest known and developed by
H.C. Carey during the first half of the nineteenth century. This group of models can be further classified as: 1) Those concerned with measuring the total interaction between two focal points 2) Those concerned with measuring the attractive force exerted by a single focal point in competition with one other on a intermediate point. The most important limitation of the unconstrained case of gravity model is that, in predicting, it overestimates interaction.

Constrained case:

Wilson has pointed out the need to introduce constraints in order to avoid the limitations imposed by the unconstrained case. An alternative explanation of this case is that the specified and calculated total production and attraction respectively balance for individual zones. Depending on the fact that one or both constraints are incorporated to the model, three distinct cases can be distinguished. (1) Production constrained, (2) Attraction constrained and (3) Production Attraction cases. In production constrained case the total number of productions are known and in attraction constrained case the total attractions are known and in the third case both productions and attractions are known.

Example/Illustration Unconstrained case:

The flows of goods from factories not location-constrained (nor production-constrained in any other way) to uses in destinations also not constrained to particular locations.

Constrained case:1) Production constrained: The shopping model, where available

expenditure is constant and the sales at the service centre are unconstrained. 2) Attraction constrained: A residential location model, where the number of people residing in all zones and working in one zone cannot exceed the number of jobs available in that zone. 3) Production Attraction cases: In a journey to work model, the number of employees in one zone and the number of jobs in the destination zone are known.

Conclusion
The unconstrained gravity model has been applied most extensively in the marketing field. The most well known model of this type is Law of Retail Gravitation postulated by Reilly which states that A city will attract retail trade from an individual in its surrounding territory in direct proportion to the population size of the service centre and in inverse proportion to the square of his distance away from the centre. The constrained gravity model avoids the limitations imposed by the unconstrained case.

MARKET AND SUPPLY AREA ANALYSIS

Area of application
The model is applicable for urban market areas which have a significance impact on the retail system.

Purpose of the Study/Model/Analysis

The analysis evaluates the performance structure of the markets and investigates different alternative patterns.

Introduction
The urban land market is an integral part of the contemporary private enterprise system, which is rooted in individualism and which functions primarily through the pricing mechanism of our modern exchange economy. For most commodities and services there is no single market place where bids and offers are made and transactions are consummated. Economists understand by the term market, not any particular market place in which things are bought and sold, but the whole of any regions in which buyers and sellers are in such free intercourse with one another than the prices of the same goods lends to equaliy easily and quickly. Thus the more nearly perfect a market is the stronger is the tendency for the same price to be paid for the same thing at the same time in all parts of the market.

Description The general functions of a Market area are: 1) Distributing existing space:
In returning to the subject of the functions of the urban land market, we shall look first at the function of distributing existing space. Our study of the supply characteristics of the market has established the fact that supply reactions are relatively sluggish and that adjustments of supply to changes in demand are slow. Thus, when there are sudden changes in demand, the market mechanism acts to bring about changes in the nature of intensity of the utilization of existing space before any appreciable increase or decrease can be made in the total amount of quality of the space supply for the use that demands it.

2) Adjusting the Supply of Space

In the short run, the market functions tend to redistribute the existing supply of space in accordance with changes in demand. But the final effect of changes that establish new and continuing levels of demand it to bring about increases and decreases in the available supply.

3) Price Determination
One of the main functions of the market for any commodity is the determination of price. Price or rent in the land market is the amount of money that is paid for the ownership of the services. This amount is the product of the forces of demand and supply operating in the market and expressed in bids and offers. Theoretically, in the perfect market the market prices in all transactions relating to the same commodity; are presumed to be identified. This law of single price tends to be operative in the urban land market, though we shall see later that it operates imperfectly.

4) Determining land use

It is through the interplay of market forces that the nature of the utilization of one parcel of urban land is finally determined. Thus, the land use structure of the city fashioned, plot by plot, parcel by parcel, as a product of the urban land market. It is the competition of land uses in the market that distributes the use types the arrangement that approaches the most efficient pattern.

Conclusion
The market is however, complicated by the long life of the product. Annual output usually less than two percent of the existing stock. This means that prices depend on the relation demand and stock. The price of an individual site is a residual viz., the difference between the value of the building and the cost of producing it. This is an example of economics the price depends solely on demand, since the supply is fixed. But the supply of building land in total is not fixed and the price offered for land does affect supply.

THRESHOLD ANALYSIS

Area of Application: The analysis is applicable in the land use studies and the costs
involved in new land use proposals.

Purpose of The Study /Model/Analysis: The analysis helps in better

understanding of the existing land-use ,physical barriers ,existing infrastructure ,etc of an area/region and the cost of development

INTRODUCTION

This was introduced by B.MALISZ . It was derived from the observation that town encounter physical limitation to their development due to topography ,land-use and infrastructure. This limitation is called as development THRESHOLD . The analysis indicates how and when thresholds can be overcome most efficiently

Description:
Threshold theory is based on the observation that towns encounter limitation to their expansion due to physiographic features, existing land use, and technology of infrastructure. An important inferences from these observation is that the physical growth of town. In general the cost necessary to locate one new inhabitant in a town (Ct=total cost) is at least twofold. 1.Cost not connected with the given location of construction, necessary to accommodate new inhabitants which would constitute the normal costs and have to be spent in any case (Cn=normal cost) 2.Costs tied to existing conditions and characteristics of given land which constitute additional cost substantially varying from one location to another (Ca=additional costs) Thus Ct=Cn+Ca

Method of Threshold Analysis: A highly simplified application of threshold analysis would

include the following stages. STAGE 1.0.Delination of area to be surveyed. STAGE 2.0.Analysis of factors affecting town development. 2.1.The physical suitability of land for urban development 2.2.The possible extension of the public utility and transportation systems. 2.2.1.Infrastructure required for urban development 2.2.2.Existing road network 2.3.Existing urban structure 2.3.1.With in town boundaries and built-up area should be shown 2.3.2.The ownership of land STAGE 3.Tracing the threshold lines. First and Successive thresholds can be identified in each group. 1. First threshold delimits area suitable for urban development 2.Successive threshold delimit new development areas resulting from fundamental land improvements, new development. STAGE 4.The information can be now correlated to form a synthesis of all factors considered. STAGE 5.The subdivision of land for main functions within the successive physical threshold areas. STAGE 6.The calculation of the capacity of residential areas within the first and successive threshold line. STAGE 7.The calculation of the average of industrial areas with in the first and successive threshold lines. STAGE 8.The rough calculation of the capital investment costs necessary to overstep each threshold within the examined area. STAGE 9.The calculation of the following efficiency indices for each successive threshold area. 1 =A / N1 (cost per 1 new inhabitant) 2 =A / S (cost for I acre of land now suitable for dev)

Conclusion:
Thus these efficiency indices are the main inputs for phasing of the development works

REFERENCES:
1. Models in Urban And regional Planning by Benjamin Riel. 2. Principal of economics by Marshall. Alfred Urban Land economics by Richard U. Ratcliff Building Economics Introduction to Valuation by D. Richmond Threshold Analysis by J.Kolzlowski and J.T Hughes