Consistent estimates of the elasticity of substitution between land and non-land inputs in the production of housing

Article Abstract:

A study was conducted to determine estimates of the elasticity of substitution between land and non-land inputs in housing production. Other, earlier estimates may have been biased downward as a result of errors in the measurement of land value, which leads to the conclusion that the elasticity is lower than one. The estimates in this new study were obtained through observations of the combined sale price of the house and land as well as the sale price of the vacant land. Observations were made on 219 single-family, detached houses constructed in subdivisions between 1985 and 1987 in Portland, OR. Findings revealed that the substitution elasticity is greater than that determined in past research, and many not deviate significantly from one.

Real Estate, Real Estate and Rental and Leasing, Housing, Measurement, Valuation, Real estate appraisal, Portland, Oregon, Elasticity (Economics)

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A theory of liquidity in residential real estate markets

Article Abstract:

This article discusses 'hot' and 'cold' real estate markets, and develops a corelation between them. The author asserts that the liquidity of cold markets can be good when price are high as in a hot market.

Markets (Economics)

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Internalizing neighborhood externalities: the effect of subdivision size and zoning on residential lot prices

Article Abstract:

This article evaluates the effects of lot size on the sale price of developed lots in residential subdivisions. Results show that increasing the parcel size by one acre increases prices by 3%.

Real estate agents and managers, Real Estate Appraisers, Offices of Real Estate Appraisers, Planning, Economic aspects, Laws, regulations and rules, Housing development, Neighborhood, Neighborhoods, Land subdivision, Zoning

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