IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v44y2007i11p2179-2194.html
   My bibliography  Save this article

Revisiting the Price of Residential Land in Jakarta

Author

Listed:
  • Blane David Lewis

    (World Bank in Jakarta, Jl Jenderal Sudirman, Jakarta Stock Exchange Building, Jakarta DKI 1290, Indonesia, blewis@worldbank.org)

Abstract

This paper corroborates the main stylised facts of previous studies regarding the relationship between urban residential land price and distance from the centre of the city: the effect of distance on land values is significant and negative and the influence of distance on the price of land has become less important over time. The analysis, using data from Jakarta, reveals that the use of market prices instead of appraised prices does not have much effect on the estimated land value gradient, although it does have major consequences for the estimated influence of environmental conditions on land price. Apparently, the market values environmental conditions to a significant degree whereas such conditions have no impact on government assessments of land price. The examination demonstrates that the elasticity of land price with respect to parcel size is significantly different from one, contrary to the assumption of the basic model, but that changing the naive model to reflect that fact does not have notable impact on the estimated land value gradient. Finally, the investigation illustrates the potential importance of using randomly generated data in the estimation of the influence of distance and other independent variables on land price. Utilisation of an incidental truncation model, which attempts to adjust for the non-random character of the sample data, results in an estimate of the absolute value of the land price gradient that is larger by a factor of two relative to that derived from the unadjusted model.

Suggested Citation

  • Blane David Lewis, 2007. "Revisiting the Price of Residential Land in Jakarta," Urban Studies, Urban Studies Journal Limited, vol. 44(11), pages 2179-2194, October.
    • Handle: RePEc:sae:urbstu:v:44:y:2007:i:11:p:2179-2194
    DOI: 10.1080/00420980701518974
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420980701518974
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420980701518974?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bloom, David E. & Killingsworth, Mark R., 1985. "Correcting for truncation bias caused by a latent truncation variable," Journal of Econometrics, Elsevier, vol. 27(1), pages 131-135, January.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. Heckman, James J, 1990. "Varieties of Selection Bias," American Economic Review, American Economic Association, vol. 80(2), pages 313-318, May.
    4. Colwell, Peter F. & Munneke, Henry J., 1997. "The Structure of Urban Land Prices," Journal of Urban Economics, Elsevier, vol. 41(3), pages 321-336, May.
    5. Brian J. L. Berry & Robert S. Bednarz, 1975. "A Hedonic Model of Prices and Assessments for Single-Family Homes: Does the Assessor Follow the Market or the Market Follow the Assessor?," Land Economics, University of Wisconsin Press, vol. 51(1), pages 21-40.
    6. Terence Hull, 2001. "First Results From The 2000 Population Census," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(1), pages 103-111.
    7. Paul Kwadwo Asabere, 1981. "# The Determinants of Land Values in an African City: The Case of Accra, Ghana," Land Economics, University of Wisconsin Press, vol. 57(3), pages 385-397.
    8. Sun Sheng Han, 2004. "Spatial Structure of Residential Property-Value Distribution in Beijing and Jakarta," Environment and Planning A, , vol. 36(7), pages 1259-1283, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Suparmono, 2012. "Accessibility to center business district and land price," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(2), pages 143-152, April.
    2. United Cities and Local Governments, 2011. "Local Government Finance," Books, Edward Elgar Publishing, number 14696.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manuel Arellano & Stéphane Bonhomme, 2017. "Quantile Selection Models With an Application to Understanding Changes in Wage Inequality," Econometrica, Econometric Society, vol. 85, pages 1-28, January.
    2. Caroline Bayart & Patrick Bonnel, 2015. "How to Combine Survey Media (Web, Telephone, Face-to-Face): Lyon and Rhône-alps Case Study," Post-Print halshs-01663683, HAL.
    3. K. Poehlmann & R. Helm & O. Mauroner & J. Auburger, 2021. "Corporate spin-offs’ success factors: management lessons from a comparative empirical analysis with research-based spin-offs," Review of Managerial Science, Springer, vol. 15(6), pages 1767-1796, August.
    4. Asma Hyder & Barry Reilly, 2005. "The Public and Private Sector Pay Gap in Pakistan: A Quantile Regression Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(3), pages 271-306.
    5. Patrick Bayer & Stephen L. Ross, 2006. "Identifying Individual and Group Effects in the Presence of Sorting: A Neighborhood Effects Application," Working papers 2006-13, University of Connecticut, Department of Economics, revised Jan 2009.
    6. James J. Heckman, 2008. "Econometric Causality," International Statistical Review, International Statistical Institute, vol. 76(1), pages 1-27, April.
    7. Eleonora Bertoni & Giorgio Ricchiuti, 2017. "A Multilevel Analysis of Unemployment in Egypt," LABOUR, CEIS, vol. 31(4), pages 494-514, December.
    8. Vellore Arthi & James Fenske, 2018. "Polygamy and child mortality: Historical and modern evidence from Nigeria’s Igbo," Review of Economics of the Household, Springer, vol. 16(1), pages 97-141, March.
    9. McGovern, Mark E. & Canning, David & Bärnighausen, Till, 2018. "Accounting for non-response bias using participation incentives and survey design: An application using gift vouchers," Economics Letters, Elsevier, vol. 171(C), pages 239-244.
    10. Malmendier, Ulrike M. & Botsch, Matthew J., 2020. "The Long Shadows of the Great Inflation: Evidence from Residential Mortgages," CEPR Discussion Papers 14934, C.E.P.R. Discussion Papers.
    11. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," Econometrica, Econometric Society, vol. 70(6), pages 2367-2420, November.
    12. Casey B. Mulligan & Yona Rubinstein, 2004. "The Closing of the Gender Gap as a Roy Model Illusion," NBER Working Papers 10892, National Bureau of Economic Research, Inc.
    13. Zamarro, Gema, 2010. "Accounting for heterogeneous returns in sequential schooling decisions," Journal of Econometrics, Elsevier, vol. 156(2), pages 260-276, June.
    14. Melenberg, B. & Van Soest, A., 1993. "Semi-Parametric Estimation on the Sample Selection Model," Papers 9334, Tilburg - Center for Economic Research.
    15. Doidge, Craig & Karolyi, G. Andrew & Stulz, Rene M., 2004. "Why are foreign firms listed in the U.S. worth more?," Journal of Financial Economics, Elsevier, vol. 71(2), pages 205-238, February.
    16. James Heckman & Salvador Navarro-Lozano, 2004. "Using Matching, Instrumental Variables, and Control Functions to Estimate Economic Choice Models," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 30-57, February.
    17. Heckman, James J. & Lochner, Lance J. & Todd, Petra E., 2006. "Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 7, pages 307-458, Elsevier.
    18. Farrell, Lisa & Walker, Ian, 1999. "The welfare effects of lotto: evidence from the UK," Journal of Public Economics, Elsevier, vol. 72(1), pages 99-120, April.
    19. Peter Hull & Michal Kolesár & Christopher Walters, 2022. "Labor by design: contributions of David Card, Joshua Angrist, and Guido Imbens," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(3), pages 603-645, July.
    20. Richard Blundell & Amanda Gosling & Hidehiko Ichimura & Costas Meghir, 2007. "Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds," Econometrica, Econometric Society, vol. 75(2), pages 323-363, March.

    More about this item

    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:sae:urbstu:v:44:y:2007:i:11:p:2179-2194. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    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.