IDEAS home Printed from https://ideas.repec.org/a/jre/issued/v24n12002p79-96.html
   My bibliography  Save this article

The Effect of Tax Laws and the Cost of Capital on the Size of Newly Constructed Strip Shopping Centers

Author

Listed:
  • Terrence M. Clauretie

    (University of Nevada–Las Vegas, Las Vegas, NV 89154)

  • Melvin H. Jameson

    (University of Nevada–Las Vegas, Las Vegas, NV 89154)

Abstract

While the impact of tax policy and other economic variables on the total amount of construction has been widely studied, this paper proposes that these variables also affect the size distribution of the properties constructed. The basic intuition is that there is a lower bound to the economically feasible size of a project due to economies of scale in construction. Events favorable to construction, such as lower interest rates and more favorable tax treatment, relax this lower bound permitting the construction of smaller properties. We test this proposition using data on newly constructed neighborhood shopping centers in Clark County, Nevada during the period from 1971 to 1999.

Suggested Citation

  • Terrence M. Clauretie & Melvin H. Jameson, 2002. "The Effect of Tax Laws and the Cost of Capital on the Size of Newly Constructed Strip Shopping Centers," Journal of Real Estate Research, American Real Estate Society, vol. 24(1), pages 79-96.
    • Handle: RePEc:jre:issued:v:24:n:1:2002:p:79-96
    as

    Download full text from publisher

    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol24n01/04.79_96.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:24:n:1:2002:p:79-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: JRER Graduate Assistant/Webmaster (email available below). General contact details of provider: http://www.aresnet.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.