community development with endogenous land use controls abstract when competitive landowners developers control incorporation and zoning decisions efficient patterns of development emerge when by contrast early arrivals control policy they may impose zoning restrictions that force later entrants to pay via the property tax a disproportionate share of the cost of providing public services if new arrivals are sufficiently poor they may choose to reside outside the community while higher quality land within the community remains unoccupied this inefficient and exclusionary outcome can be an equilibrium if boundaries once drawn are irreversible the ex ante introduction of a seemingly natural compensation scheme may not remedy the problem

reflections on the nature and policy implications of planning restrictions on housing supply discussion of planning policy planning practice and housing supply by kate barker planning is about other things as well but it is fundamentally an economic activity it allocates a scarce resource but independently of prices or any market information in analysing the effects this allocative mechanism has on housing supply or indeed the supply of buildings for any given use we need to think carefully about what exactly it is that planning allocates and whether in its operation it creates a constraint on the supply of what it is allocating in the british case our planning system does not operate on the supply of housing directly but indirectly via the constraint imposed on land supply given the income elasticity of demand for space this has policy implications perhaps even more serious than is acknowledged by barker

to build above the limit implementation of land use regulations in urban china abstract this paper studies the implementation of land use regulations in urban china in particular we investigate land developers compliance with floor to area ratio far regulations using a unique set of residential land parcel data from 30 major chinese cities matched with the corresponding residential development projects built on those parcels in our sample in more than 20 of the cases developers built above the regulatory far limits in the ex post land development and the total floor area built in those cases increased 21 5 over the regulatory limit our analysis finds that attractive land location attributes tend to induce developers to pursue upward adjustments of far moreover developers who are more likely to have special relationships with government officials tend to make larger upward adjustments our estimates suggest that there exists a significant gap between the privately optimal far that maximizes land value and the regulatory far this gap is only modestly reduced by corrupt ties with government officials implying that far regulations have imposed a highly restrictive constraint on china s urban land development even given imperfect compliance

is there a double dividend from anti sprawl policies abstract this paper examines the welfare effects of anti sprawl policies such as development tax in a simple spatial explicit urban model with two market failures urban decline at the city core and underprovision of open space amenities at the urban fringe and pre existing distortionary property tax used to fund public services and improvements to mitigate urban decline consistent with prior double dividend literature there is a tax interaction effect that occurs between the development tax and the pre existing property tax however there are two fundamental differences between the tax interaction effect identified here and that of prior literature ours one has two components first there is a cost side tax interaction effect that is spatially concentrated at the urban fringe as only agents at the urban fringe alter their behavior in response to the development tax second there is also a benefit side tax interaction effect as increases in open space at the urban fringe are capitalized into housing prices throughout the city in contrast to prior literature we find that the empirical importance of the combined tax interaction effect is of substantially less importance and as a consequence the likelihood of a double dividend is higher than in prior studies further we show that the development tax should be part of the local tax system even in the absence of open space benefits

do better schools matter parental valuation of elementary education the evaluation of numerous school reforms requires an understanding of the value of better schools given the difficulty of calculating the relationship between school quality and student outcomes i turn to another method and use house prices to infer the value parents place on school quality i look within school districts at houses located on attendance district boundaries houses then differ only by the elementary school the child attends i thereby effectively remove the variation in neighborhoods taxes and school spending i find that parents are willing to pay 2 5 percent more for a 5 percent increase in test scores this finding is robust to a number of sensitivity checks

distinctively different a new approach to valuing architectural amenities we propose a method to estimate the capitalized value of the architectural design quality of a neighbourhood our economic design premium is identified by spatially differentiating property prices and design quality within neighbourhoods and comparing the differences across neighbourhoods we apply our method to 47 conservation area neighbourhoods in england in which we analyse around 7900 property transactions and interview more than 500 residents we find a capitalization effect of about 25 4 38 7k associated with a one step increase on a five step scale ranging from not at all distinctive to very distinctive our results suggest that this effect is at least partially driven by an architectural externality

the introduction of price signals into land use planning decision making a proposal although directed to the british system of town and country planning this paper has relevance for many oecd countries including some with systems of land use regulation which evolved entirely independently of the british the paper starts by characterising the basic features of the british land use planning system viewed from the resource allocation point of view of an economist a conclusion is that the system explicitly excludes any use of price signals from its decisions the paper then summarises the problems which the exclusion of price information has given rise to because the uk planning system has deliberately constrained the supply of space and space is an attribute of housing which is income elastic in demand rising incomes not only drive rising real house prices but also mean that land prices have risen considerably faster than house prices several housing attributes other than garden space are to a degree substitutes for land but the underlying cause of the inelastic supply of housing in the uk is the constraint on land supply the final section proposes a mechanism which would make use of the information embodied in the price premiums of neighbouring parcels of land zoned for different uses such premiums signal the relative scarcity of land for different uses at each location and should become a material consideration in planning decision making if they were above some threshold this should provide a presumption of development unless maintaining the land in its current use could be shown to be in the public interest if combined with impact fees such a change would not only make housing supply more elastic and the system more transparent but would help to distance land availability decisions from the political process

habit formation interdependent preferences and demographic effects in the almost ideal demand system the authors model myopic habit formation interdependence of preferences among consumers and demographic effects as taste shifters in a micro consumer demand model of the almost ideal demand variety the model is estimated for dutch micro data the authors investigate the dynamic properties of the model and find that it behaves very differently from models without interdependence of preferences the implications for micro macro modeling are discussed copyright 1991 by royal economic society

planning delay and the responsiveness of english housing supply there is growing international interest in the impact of regulatory controls on the supply of housing most research focuses on the supply impacts of prescribed limits on land use but housing supply may also be affected by the process of planning monitoring and approval but this is hard to measure in detail the uk has a particularly restrictive planning regime and a detailed and uncertain process of development control linked to it but does offer the opportunity of detailed site based investigation of planning delay this paper presents the findings of empirical research on the time taken to gain planning permission for selected recent major housing projects in southern england the scale of delay found was far greater than is indicated by average official data measuring the extent to which local authorities meet planning delay targets hedonic modelling indicated that there is considerable variation in the time it takes local authorities to process planning applications housing association developments are processed more quickly than those of large developers and small sites appear to be particularly time intensive these results suggest that delays in development control may be a significant contributory factor to the low responsiveness of uk housing supply to upturns in market activity

the impact of land use planning and tax subsidies on the supply and price of housing in britain this article presents new empirical estimates of the impact of two types of policy intervention tax subsidies and land use planning on the housing market in britain the estimates are derived from a set of models representing the demand and supply sides of the market for the new private housebuilding which include an explicit land supply element the models are fitted to cross sectional data at the inter urban local authority level and then employed in medium period simulations of alternative policies modelling at this level enables estimates to be made of the extent of variation between local markets in the elasticity of supply and also in the impacts of policy measures including the capitalisation of tax subsidies

the amenity value of english nature a hedonic price approach using a hedonic property price approach we estimate the amenity value associated with proximity to habitats designated areas domestic gardens and other natural amenities in england there is a long tradition of studies looking at the effect of environmental amenities and disamenities on property prices but to our knowledge this is the first nationwide study of the value of proximity to a large number of natural amenities in england we analysed 1 million housing transactions over 1996 2008 and considered a large number of environmental characteristics results reveal that the effects of many of these environmental variables are highly statistically significant and are quite large in economic magnitude gardens green space and areas of water within the census ward all attract a considerable positive price premium there is also a strong positive effect from freshwater and flood plain locations broadleaved woodland coniferous woodland and enclosed farmland increasing distance to natural amenities such as rivers national parks and national trust sites is unambiguously associated with a fall in house prices our preferred regression specifications control for unobserved labour market and other geographical factors using travel to work area fixed effects and the estimates are fairly insensitive to changes in specification and sample this provides some reassurance that the hedonic price results provide a useful representation of the values attached to proximity to environmental amenities in england overall we conclude that the housing market in england reveals substantial amenity value attached to a number of habitats designations private gardens and local environmental amenities

the impact of supply constraints on house prices in england we test the theoretical prediction that house prices respond more strongly to changes in local earnings in places with tight supply constraints using a unique panel dataset of 353 local planning authorities in england between 1974 and 2008 exploiting exogenous variation from a policy reform vote shares and historical density to identify the endogenous constraints measures we find that regulatory constraints have a substantive positive impact on the house price earnings elasticity the effect of constraints due to scarcity of developable land is largely confined to highly urbanised areas and uneven topography has a quantitatively less meaningful impact

social cost of environmental quality regulations a general equilibrium analysis the use of cost benefit analysis by federal regulatory agencies has expanded greatly in scope and sophistication unfortunately agencies continue to employ private cost rather than social cost to evaluate environmental quality regulations furthermore general equilibrium impacts and intertemporal effects of regulations are typically not included in the evaluation in this paper we estimate the social cost of environmental quality regulations mandated by the clean air and clean water acts we construct an econometric general equilibrium model of the united states to demonstrate that social cost estimates diverge sharply from private cost estimates we also demonstrate that general equilibrium impacts are significant and pervasive and that intertemporal effects of the regulations heretofore ignored are significant

estimating compensating and equivalent income variations from hedonic price models abstract estimates of welfare changes obtained from hedonic price models usually consist of changes in marshallian consumer s surplus this note shows how compensating and equivalent income variations can be computed from the information available in hedonicprice models

estimating willingness to pay with exaggeration bias corrected contingent valuation method estimates of the prices customers are willing to pay for new products or services using responses from survey questionnaires are notoriously biased on the high side an approach to obtaining more realistic estimates is suggested here called the exaggeration bias corrected contingent valuation method ebc cvm the method is an alternative to conventional contingent valuation methods cvms that have been used in economics and to a lesser extent in marketing two experiments and one field study are presented to demonstrate the effectiveness of the method in each case the proposed method outperformed conventional cvms in comparison with real choices or more realistic price estimates

strategic control of growth in a system of cities abstract this paper provides an analysis of the supply restriction model of growth controls growth controls in such a model harm consumers while enriching landowners and they will only be adopted if landowners have political power in the model this power is manifested in the city government s use of a social welfare that takes both landlord and consumer welfare into account since cities cannot be small if the supply restriction inherent in growth controls is to have an impact strategic interactions must be considered in the analysis of city choices a general model is presented and an extended example based on leontief preferences is then considered comparative static analysis of nash equilibria in the leontief case shows that perturbations of preferences or other characteristics of a single city can have important spillover effects that alter the choices of all cities in the region

hypothetical versus real willingness to pay in the health care sector results from a field experiment abstract we conducted a field experiment comparing hypothetical and real purchase decisions for a pharmacist provided asthma management program among 172 subjects with asthma subjects received either a dichotomous choice contingent valuation question or were given the opportunity to actually enroll in the program three different prices were used us 15 40 and 80 in the hypothetical group 38 of subjects said that they would purchase the good at the stated price but only 12 of subjects in the real group purchased the good p 0 000 we cannot however reject the null hypothesis that definitely sure hypothetical yes responses as identified in a follow up question correspond to real yes responses we conclude that the dichotomous choice contingent valuation method overestimates willingness to pay but that it may be possible to correct for this overestimation by sorting out definitely sure yes responses

public sector layoffs credibility and the dynamics of inflation in a simple macromodel abstract the impact of public sector layoffs is analyzed in a simple perfect foresight model that incorporates the main elements of the conflict between adjustment and the pursuit of long run efficiency permanent layoffs are normally welfare improving even when they give rise to a lengthy phase of high unemployment the transitional problems are much more acute however when doubts exist about the permanency of the layoffs self fulfilling failure is frequently an equilibrium when it is known that a return of inflation to its previous level will provoke the government to reverse the reform moreover reform may be most difficult to sustain precisely when it promises the greatest benefits

relocation of public sector workers evaluating a place based policy this paper investigates the local labor market impact of a uk relocation initiative the 2004 lyons review the review resulted in the dispersal of about 25 000 civil service jobs out of london and the south east towards other uk destinations this study aims to detect whether the inflow of public sector jobs crowded out private sector activity or stimulated the local provision of jobs in the private sector focusing on short term effects i find that the relocation initiative raised private sector employment in receiving areas and changed the sectoral distribution of local employment towards services i also find evidence of displacement i e a tendency for private businesses to locate closer to a relocation site moving out of areas at 1 2km and 2 3km distances into areas at 0 1km distance these agglomeration effects appear highly localized the largest policy impact is found in areas that received the relocated jobs with spillover effects reducing sharply over distance

the welfare economics of land use planning abstract this paper presents an empirical methodology for the evaluation of the benefits and costs of land use planning the technique is applied in the context of the town and country planning system of the uk and examines the gross and net benefits of land use regulation and their distribution across income groups the results show that the welfare and distributional impacts can be large

the dynamics of optimal gradual stabilizations inflation inertia may be quite tenacious because of the simultaneous interaction between policy actions and inflationary expectations under imperfect credibility this result is particularly relevant for understanding some of the failed efforts to stabilize inflation in south america this article deals with the issue of inertia in the framework of imperfect information about the type of the policymaker and extends the existing models to an infinite horizon because policymakers do not have perfect control of inflation a frivolous stabilizer may deviate from the policies of a serious stabilizer without necessarily being unmasked immediately when the difference in the ability of strong and weak policymakers to control inflation is large unexpected inflation may be persistently negative for quite a while thus causing reduced economic activity and giving the indication that credibility is low if the policymaker persists with the stabilization this pattern gradually disappears as his reputation rises but before this final stage the serious policymaker has to compromise his inflation objective in view of adverse expectation about this type and pay the cost of imperfect credibility

analysis of urban land shortages the case of korean cities both natural constraints and government regulations on urban land use can cause urban land shortages and hence higher prices of urban land and housing than otherwise there have been attempts to investigate the differential effects of natural and contrived restrictions on land price for w x example rose 10 found that natural constraints have a significant positive impact on land value while monopoly zoning power makes a smaller contribution in explaining inter city variations in urban land price w x on the other hand pollakowski and wachter 8 analyzed the impact of land use controls measured by an index of restrictiveness of zoning and confirmed that land use regulations raise the prices of housing and developed land to the best knowledge of the authors however none of the published empirical studies including the two cited above actually measure the amount of shortage of urban land at the city level instead land supply variables are employed together with demand variables such as income and population size to determine their impact on land or housing prices this study seeks to fill the gap in the literature first by developing a measure of the urban land shortagersurplus from an analysis of land price

on the outcome of inconsistent programs under exchange rate and monetary rules abstract this paper studies the case of inconsistent programs of monetary policy that is programs incompatible in the long run with a given budget deficit so that at some point in the future there is an eventual crisis and demise of the program all of which is from the outset anticipated by the public the context is one of a small open economy with perfect foresight in which two sets of possibilities are analyzed i a monetary or an exchange rule for the conduct of monetary policy and ii presence or absence of capital mobility it is found that while the choice of the rule is unimportant restrictions on capital mobility determine a very different response for the case of either rule concerning side effects of the program on non monetary variables and on the post crisis level of country indebtedness

strategic urban projects in amsterdam and new york incomplete contracts and good faith in different legal systems contracts between local government and private investment agencies play an important role in strategic urban projects real estate cycles provide only a narrow window of opportunity within which to draft such contracts a legal system should therefore not impede the possibility of reaching an agreement quickly instead it should facilitate efficient ways of reaching an agreement lengthy contracting may contribute to the persistence of real estate market cycles this paper explores the question of whether the civil law principle of good faith facilitates the drafting of incomplete contracts which may be efficient in situations of high uncertainty and complexity as was the case with two strategic inner city projects the south axis in amsterdam and battery park city in new york city the paper further establishes that good faith does play a considerable role in the differences in contracting practice

inflationary rigidities and orthodox stabilization policies lessons from latin america orthodox stabilization programs in latin american countries have been notoriously unsuccessful in combating inflation despite the imposition of stringent cuts in government deficits in most cases inflation came down only slowly and temporarily with concomitant declines in growth and employment the bolivian program one of the only latin american successes is contrasted with those of argentina brazil chile and mexico the problems of dealing with chronic inflation are compared with those of hyperinflationary countries and the influence of price and wage rigidities expectations and credibility is explored the study shows that fiscal restraint is a necessary but not sufficient condition for success and that sound management of nominal variables the exchange rate and money supply are also necessary the critical role of credibility is linked with price and wage rigidities in the chronic inflation countries whereas the unsuitability of hyperinflation is seen to increase the credibility of and thus the potential for successful stabilization programs

what holds back high growth firms evidence from uk smes high growth firms are seen as vital for economic growth it is important for policy and theory to consider the barriers faced by firms achieving high growth and those with the potential to do so this article uses data for 4 858 uk smes to investigate the obstacles perceived by two sets of firms 1 firms in periods of high growth and 2 potential high growth firms which are observationally similar but are not achieving high growth the results suggest high growth firms perceive problems in six areas recruitment skill shortages obtaining finance cash flow management skills and finding suitable premises potential high growth firms feel held back by the economy obtaining finance cash flow and their management skills but are less likely to perceive regulation is a problem the results have implications for theory on high growth firms and policies focussed at them

landscape preferences and patterns of residential development abstract i analyze a model of residential location choice where people derive utility from their proximity to open space when people have such landscape preferences then 1 equilibrium residential development is mixed with undeveloped land 2 equilibrium land price gradients depend sensitively on how land markets are organized are not generally monotonic and may or may not reflect the value of open space and 3 dynamic equilibria generally have the property that more remote areas are developed before more central areas finally when compared to optimal development equilibrium development houses too many residents too close together and remote areas are developed too soon these results imply that equilibrium development may not be sprawling enough and that policies to encourage infill development are not welfare improving

the impact of government deficits on money growth in developing countries abstract this paper investigates the relationship between government budget deficits and money growth in the developing countries for which reliabile data exist it is sometimes suggested that it is more likely that money growth follows debt growth in developing countries due to the embryonic state of capital markets and because the central bank generally comes under direct control of the minister of finance our results provide only mixed support for this contention however in the majority of countries in our sample there is no evidence that government deficits affect money growth for high inflation years there seems to be more support for a relationship between deficits and money growth

the stochastic city abstract this paper analyzes a simple model of an urban area with growth and uncertainty household income rents and prices for land follow stochastic processes even though investors are risk neutral uncertainty affects both land rents and land prices in equilibrium because the conversion of land from agricultural to urban use is irreversible growth on the other hand affects urban and agricultural land prices but not the level of rents we show that uncertainty i delays the conversion of land from agricultural to urban use ii imparts an option value to agricultural land iii causes land at the boundary to sell for more than its opportunity cost in other uses and iv reduces equilibrium city size

measuring consumers willingness to pay at the point of purchase abstract economists psychologists and marketing researchers rely on measures of consumers willingness to pay wtp in estimating demand for private and public goods and in designing optimal price schedules existing market research techniques for measuring wtp differ in whether they provide an incentive to consumers to reveal their true wtp and in whether they simulate actual point of purchase contexts the authors present an empirical comparison of several procedures for eliciting wtp that are applicable directly at the point of purchase in particular the authors test the applicability of becker degroot and marschak s 1964 well known incentive compatible procedure for assessing the utility of lotteries to measuring consumers wtp in three studies the authors explore the reliability validity and feasibility of the procedure and show that it yields lower wtp estimates than do non incentive compatible methods such as open ended and double bounded contingent valuation they show experimentally t

housing productivity and the social cost of land use restrictions abstract we use metro level variation in land and structural input prices to test and estimate a housing cost function with differences in local housing productivity both ols and iv estimates imply that stringent regulatory and geographic restrictions substantially increase housing prices relative to land and construction input costs the typical cost share of land is one third and substitution between inputs is inelastic a disaggregated analysis of regulations finds state level restrictions are costlier than local ones and provides a regulatory cost index rci housing productivity falls with city population typical land use restrictions impose costs that appear to exceed quality of life benefits reducing welfare on net

the optimal distribution of population across cities abstract we develop an urban model that incorporates 1 heterogeneous sites 2 fiscal and urban externalities and 3 an endogenous number of cities i e the extensive margin of urban development within and across city decreasing returns to scale cause agents to perceive their city as being too large in the socially optimal allocation as a consequence in equilibrium the largest cities on the most amenable sites are undersized whereas the smaller cities on less amenable sites are oversized we propose a test for optimal city size with heterogeneous sites extending the henry george theorem

regulation and productivity performance the paper reviews theory and evidence on the ways in which regulation affects productivity outcomes in a context of endogenous growth it is argued that traditional measures of compliance costs miss the potentially most important impacts of regulation on productivity which occur through changes in incentives to invest and to innovate recent attempts to measure cross country variations in the strength of product market and employment regulation are considered and some weaknesses are highlighted nevertheless consistent with endogenous growth models there appears to he quite strong evidence that regulations which inhibit entry into product markets have an adverse effect on tfp growth in oecd countries although there are some discrepancies in the evidence on most measures the uk appears lightly regulated relative to france and germany and this may have contributed to a reduction in the recent past in the uk s tfp gap

empty homes longer commutes the unintended consequences of more restrictive local planning abstract we investigate the impact of land use regulation on housing vacancy rates using a 30 year panel dataset on land use regulation for 350 english local authorities las and addressing potential reverse causation and other endogeneity concerns we find that tighter local planning constraints increase local housing vacancy rates a one standard deviation increase in restrictiveness causes the local vacancy rate to increase by 0 9 percentage points 23 the same increase in local restrictiveness also causes a 6 1 rise in commuting distances the results underline the interdependence of local housing and labour markets and the unintended adverse impact of more restrictive planning policies

british planning policy and access to housing some empirical estimates there is evidence that the implementation of the planning system creates scarcity rents for land in different uses by acting as a constraint on land supply this paper provides for 1984 estimat

inflationary consequences of anticipated macroeconomic policies budget deficits implying an unbounded present value of government debt are infeasible and hence induce expectations of a future policy change we study how expectations of a policy switch whose timing or mix between expenditure cuts tax increases or increases in money growth rates may be uncertain affect economic dynamics before the switch takes place we are especially concerned with the correlation between changes in the deficit and inflation of particular interest is our finding that timing uncertainty may induce fluctuations in the rate of inflation that seem to be unrelated to the budget deficit at a time when the budget deficit is responsible for inflation

measurement of health state utilities for economic appraisal health status measurement for use in economic appraisal of health care programmes is reviewed in this paper with particular emphasis on utility measurement a framework for economic appraisal is presented displaying the various components that must be measured and showing how the three forms of analysis cost effectiveness analysis cost benefit analysis and cost utility analysis relate to the framework and to each other one of the components in the framework is health status it can be measured using ad hoc numeric scales willingness to pay receive or health state utilities the determination of health state utilities is reviewed covering the following issues alternative sources of utilities health state descriptions multi attribute utility approach determination of appropriate subjects utility aggregation and accuracy three measurement techniques for health state utilities are described in detail rating scale standard gamble and time trade off the use of these methods is described for both chronic and temporary health states and for both health states considered better than death and those considered worse than death

evaluating the validity of the dichotomous choice question format in contingent valuation hypothetical and actual cash willingness to pay wtp for an art print were elicited with dichotomous choice and open ended question formats comparing hypothetical and actual dichotomous choice responses using both a likelihood ratio test and the method of convolutions suggests we reject equality at the 0 05 but not the 0 01 level hypothetical wtp was roughly two times actual wtp with the dichotomous choice format there were no significant differences between the open ended and dichotomous choice question formats when both were used to estimate hypothetical wtp or both used to estimate actual wtp

hedonic prices property values and measuring environmental benefits a survey of the issues this paper provides a review of the theoretical basis and the assumptions required in order to use hedonic price equations derived from property value data to obtain measures of the prices and the inverse demand functions for environmental amenities such as air quality it also includes a review and assessment of existing empirical applications of the technique to problems of air and water quality and urban noise

management financing and taxation of housing stock in the shrinking cities of aging societies abstract more than 11 million homes lie empty across europe more than 2 million homes are empty in each of france and italy 1 8 million in germany and more than 700 000 in the uk these figures show that a large share of the housing stock in europe is not in use the problem has arisen because policymakers did not develop proper tools to balance long term supply and demand for housing the article describes why this problem appeared and provides an answer to the question of what type of incentives policymakers should apply to housing stock management financing and taxation to achieve a better utilization of the built environment a housing stock is a form of inventory of a built environment the value of housing stock represents the major part of inventories in each society such stock currently is not managed properly because the management of housing stock does not include the methods for forecasting demand according to the dynamics of age cohorts for different housing needs preferences and purchasing power the goal is to develop such tools therefore the actuarial reverse mortgage approach to financing is combined with a graph of a multiple decrement competing risk approach to achieve better forecasting of supply and demand and to show how tax policies influence the housing market and the inventory of empty homes the article also shows how taxation of real estate transactions is eating into the housing equity of the elderly when the latter must change their residential property due to decreased functional capacity therefore we conclude that taxation of transactions is not an age friendly instrument and should be replaced by property taxes that are paid annually a better taxation policy is also suggested for spain

the qualitative economics of development control abstract this paper examines space supply restrictions and containment policies in the context of a monocentric urban model with several classes results are obtained concerning the qualitative effects of such policies on space i e land values and locations of the various groups

differential demand systems a further look at barten s synthesis barten s synthetic model is attractive to applied researchers since it is useful for testing the adequacy of the competing functional forms of differential demand systems including the popular rotterdam and almost ideal demand systems this article shows that the synthetic model is not a mere artificial composite of the known differential demand systems as it has been considered but rather viewed as a model in its own right it is demonstrated that at the individual consumer level barten s model has the same marginal budget shares as generated by specific forms of engel curves formulated by the box cox transformation

hedonic prices and implicit markets estimating demand and supply functions for differentiated products in choosing the level of quality to purchase the buyer of a differentiated product also chooses a point on the marginal price schedule for that product hence in general the demand functions for product characteristics cannot be consistently estimated by ordinary least squares market equilibrium results in a matching of characteristics of demanders and suppliers this matching restricts the use of buyer and seller characteristics as instruments when estimating demand and supply functions for product characteristics the paper develops these issues a stochastic structure for hedonic equilibrium models is then proposed identification results are presented and estimation procedures are outlined

public open space conservation under a budget constraint abstract this paper analyzes the fiscal and land value impacts of public open space conservation in a budget constrained city it derives the necessary and sufficient conditions for open space conservation to increase the level of municipal services and the total land value within the city the theoretical results together with the empirical evidence found in the literature suggest that open space conservation can increase the level of municipal services and total land value in a significant share of american cities even if it generates no amenities open space conservation will likely increase total land values and municipal services in metropolitan areas that have stringent land use regulations high development densities and relatively little open space but will likely reduce municipal services and total land values in small lightly regulated cities surrounded by rural land and fiscally constrained in providing essential public goods h4 r3 q2

land use regulation and welfare we evaluate the effect of land use regulation on the value of land and on welfare our estimates are based on a decomposition of the effects of regulation into three components an own lot effect which reflects the cost of regulatory constraints to the owner of a parcel an external effect which reflects the value of regulatory constraints on one s neighbors a supply effect which reflects the effect of regulated scarcity of developable land using this decomposition we arrive at a novel strategy for estimating a plausibly causal effect of land use regulation on land value and welfare this strategy exploits cross border changes in development prices and regulation in regions near municipal borders our estimates suggest large negative effects of regulation on the value of land and welfare in these regions

on the price of land and the value of amenities a house represents not only a bundle of structural characteristics but also a set of location specific characteristics adding locational coordinates and site area to other house characteristics makes it possible to estimate a land rent surface as well as thle hedonic prices attached to local patterns of land use and other neighbourhood characteristics one can then estimate how the value of such location specific characteristics are capitalized into land prices this analysis illustrated with estimates based on data from two british towns has a number of wider implications it generates a more parsimonious method of estimating amenity values it also reveals likely systematic biases produced by conventional hedonic studies which exclude land and location finally it clarifies the conceptual definition of land and suggests that monocentric models can perform well despite recent criticism