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Land Value and Parcel Size: A Semiparametric Analysis

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Author Info
Thorsnes, Paul
McMillen, Daniel P

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Abstract

We use a semiparametric estimator to analyze the relationship between land values and parcel size in a sample of 158 undeveloped parcels in the Portland, Oregon, metropolitan area. The semiparametric estimator combines the benefits of parametric and nonparametric estimation. The value-size relationship is estimated nonparametrically, which permits the function to be linear, convex, and concave in different regions. A simple log-linear parametric relationship is assumed for the rest of the model, which conserves degrees of freedom and simplifies hypothesis testing. Our semiparametric estimates do not reject log-linearity for the value-size relationship. Copyright 1998 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Journal of Real Estate Finance & Economics.

Volume (Year): 17 (1998)
Issue (Month): 3 (November)
Pages: 233-44
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Handle: RePEc:kap:jrefec:v:17:y:1998:i:3:p:233-44

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Web page: http://www.springerlink.com/link.asp?id=102945

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  1. Peter Colwell & Henry Munneke, 2009. "Directional Land Value Gradients," The Journal of Real Estate Finance and Economics, Springer, vol. 39(1), pages 1-23, July. [Downloadable!] (restricted)
  2. Ruben N. Lubowski & Andrew J. Plantinga & Robert N. Stavins, 2007. "What Drives Land-Use Change in the United States? A National Analysis of Landowner Decisions," NBER Working Papers 13572, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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