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The Transition of Land to Urban Use
Richard Arnott,Frank D. Lewis +1 more
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In this article, the authors investigate the economics of the transition from rural to urban use and propose a simple model to examine the developer's problem: When and at what destiny should vacant land be developed to maximize the present value of the land?Abstract:
This paper investigates the economics of the transition of land from rural to urban use. A simple model is employed to examine the developer's problem: When and at what destiny should vacant land be developed to maximize the present value of the Land? A series of rules emerges from the analysis to the timing and density of new development. In the latter half of the paper, the rules are tested against recent Canadian experience and peform well.read more
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Causes of Sprawl: A Portrait from Space
TL;DR: In this article, the authors study the extent to which U.S. urban development is sprawling and what determines differences in sprawl across space, using remote-sensing data to track the evolution of land use.
Journal ArticleDOI
The Fundamentals of Land Prices and Urban Growth
TL;DR: In this paper, a simple model in which capital is durable and landowners have perfect foresight, the price of urban land has four additive components: the value of agricultural land rent, the cost of conversion, the values of accessibility, and the expected future rent increases, a growth premium.
Journal ArticleDOI
Interacting agents, spatial externalities and the evolution of residential land use patterns
TL;DR: In this article, a model of land use conversion that incorporates local spillover effects among spatially distributed agents is developed to test the hypothesis that fragmented patterns of development in rural-urban fringe areas could be due to negative externalities that create a'repelling' effect among residential land parcels.
Journal ArticleDOI
The stochastic city
TL;DR: The authors analyzes a simple model of an urban area with growth and uncertainty and shows that uncertainty delays the conversion of land from agricultural to urban use, imparts an option value to agricultural land, causes land at the boundary to sell for more than its opportunity cost in other uses, and reduces equilibrium city size.
Posted Content
The intensity and timing of investment: The case of land
Yuming Li,Dennis R. Capozza +1 more
TL;DR: In this article, the authors model the decision to replace durable capital when intensity is variable and show that intensity interacts in important ways with timing, taxes, and project values, and provide a general yet simple formation of the problem using an optimal-stopping framework.
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Journal ArticleDOI
The optimal timing of urban land development
TL;DR: In this article, a modified Wicksell model was used to explain optimal timing decisions concerning the development of land from a lower to a higher urban use, and the analysis has shown that, within the context of the assumptions, the optimal date for development or redevelopment of urban land depends on the discount rate applying in the real estate market, the property tax rate, the earnings in any interim use and the way in which the higest and best use of the land is expected to change in the future.