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GATED COMMUNITES SPRAWL AND SOCIAL SEGREGATION IN SOUTH CALIFORNIA By Renaud Le Goix Gökç... - page 5 / 46

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The capitalist production of urban space by private firms and homeowners, has a social cost and generates spillover effects such as:

pollution,

sprawl,

congestion,

competition for land uses,

land speculation,

free-riding.

Interpreted as a market failure (Bator, 1958), such externalities represent a cost for the society as a whole.

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