Journal ArticleDOI
Transaction costs of allocating increased land value under public leasehold systems: Hong Kong
TLDR
In this article, the authors explored the viability of four land-value capture mechanisms available under public leasehold systems: initial land auctioning, contract modification, lease renewal, and collection of land rent.Abstract:
Using Hong Kong as a case study, the paper explores the viability of four land-value-capture mechanisms available under public leasehold systems: initial land auctioning; contract modification; lease renewal; and, the collection of land rent. It is found that these mechanisms do not work equally well; instead, their viability depends largely on the context within which the contracting parties practise land leasing. By applying a modified transaction-costs framework to the case, it is shown that the transaction costs of allocating the land value at the initial land auction are the lowest among the four mechanisms. This explains why the Hong Kong government relies on public land auctions to capture land value. The paper concludes with a discussion of the implications of this finding for Hong Kong and for countries where officials are experimenting with public leasehold systems.read more
Citations
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Journal ArticleDOI
Rail and property development in Hong Kong: Experiences and extensions
Robert Cervero,Jin Murakami +1 more
TL;DR: Hong Kong has aggressively pursued transit value capture to finance railway infrastructure through its ‘Rail + Property’ development programme, or R+P, this paper, which has in turn increased ridership and housing prices.
Journal ArticleDOI
Property rights, transaction costs and institutional change: Conceptual framework and literature review
TL;DR: In this article, a property-rights-based approach for analyzing urban land markets is proposed. But, it is not suitable for the analysis of complex urban land market dynamics, since it may not be readily applicable or efficacious in explaining the convoluted urban land-market realities.
Journal ArticleDOI
Land value capture mechanisms in Hong Kong and Singapore
TL;DR: Hong Kong and Singapore are characterized by rapid economic development and a high population density of 6,250 and 6,055 per km2 land respectively as mentioned in this paper, and the design and collection of taxes on land, their value capture instruments and their allocation of revenue for public works are examined.
Journal ArticleDOI
Institutional economics and property strata title – a survey and case study
Megan Walters,Paul Kent +1 more
TL;DR: In this paper, the authors consider whether changing the ownership system will alter people's behaviour and reduce management problems in Hong Kong and conclude that the existing common law system fails to take account of the innate difficulty of rational self-interested individuals acting for their collective good without some central authority to provide management.
Journal ArticleDOI
The Rebound of Private Zoning: Property Rights and Local Governance in Urban Land Use
TL;DR: In this article, the authors argue that NIMBY and regulatory takings are two well-known phenomena associated with land-use change in US cities and claim that both are manifestations of what economists refer to as a "hold-up problem".
References
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Journal ArticleDOI
Law Enforcement, Malfeasance, and Compensation of Enforcers
Gary S. Becker,George J. Stigler +1 more
TL;DR: In this article, a new economic approach to political behavior seeks to develop a positive theory of legislation, in contrast to the normative approach of welfare economics, by asking why certain industries and not others become regulated or have tariffs imposed on imports or why income transfers take the form and direction they do.
Journal ArticleDOI
Diverting the Coasean River: Incentive Schemes to Reduce Unemployment Spells
TL;DR: The authors examines the results of a labor-market experiment conducted by Coase's original exposition of the Coase Theorem and concludes that the value of the coase theorem to law and to social science rests upon the extent to which the brilliant theory is empirically validated.
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