Unformatted text preview: externality). How would you recover this loss? Do you now see the rationale behind the development of “Homeowners Associations”, and restrictive covenants that are placed in real estate deeds. These legal instruments are used to preserve and maintain the value of homes in sub-divisions. Zoning ordinances and municipal land use plans are other legal prescriptions for preserving or enhancing real estate values. Another example of a positive externality is EDUCATION. Higher education leads to increased GDP (economic growth) and lower crime rates. 21...
View Full Document
- Fall '10
- Deed, Value added, positive externality, lower crime rates, real estate deeds