{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

5432887__Land_Values_ - Land Values Running head LAND...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Land Values 1 Running head: LAND VALUES: A LITERATURE REVIEW Land Values: A Literature Review [Author’s Name] [Institution’s Name]
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Land Values 2 Land Values: A Literature Review Many researchers explore the land value–size relationship using sales of only large parcels, a few use sales on only small parcels, while some partition land sales data. The relationship between the size of a parcel of unimproved land and its value is a subject of interest in the literature, both from a theoretical and a practical perspective. From the original conjecture, that the relationship should be linear, to the model proposed herein, the challenge has been to better understand land values. As per general determinants of land values internationally, the importance of space for land use policy has grown with the development of urban areas and technological innovation. As, for instance, Raufer (1998) points out, during the industrial revolution cities could not easily grow beyond a given dimension unless they solved the sanitary sewerage and water drainage system, which typically involved the location of the network . Since then, many utilities compete for space, from water or gas pipes to optic fiber cables. The same pattern could be traced regarding some transportation systems, both public and private. It is very common to see parking spaces in city centers. And something similar has happened with buildings too. In places with severe weather conditions, some built-up spaces tend to be located. In other cities, it is the very high value of land that presses development, mainly in city centers. In Japan, for
Image of page 2
Land Values 3 instance, prime land has more and more been developed, for a wide variety of uses: retailing, offices, cultural, etc. As more uses compete for prime locations, the more relevant the subject of subsurface rights and values becomes. All instances face a common feature, though. The use of land causes many externalities. By definition, the presence of externalities modifies the social opportunity cost of space leaving the private cost unchanged, and leads the market to assign a non-optimal amount of the resource consumption from a social viewpoint.1 One of the possible ways to solve this problem is through comprehensive planning of individual sites, areas or regions. However, planning has traditionally focused its attention to surface and above-surface development. Furthermore, as construction and tunneling techniques improve, and development becomes more feasible and economically more desirable, the topic deserves closer attention. Consequently, this devotes its attention to the characterization of land as an economic good and to estimate its value. If the value could be estimated, the market failure to efficiently use land could be corrected through economic instruments, planning or other means.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern