AbstractThis paper investigates the determinants of skyscraper height. First a simple model is provided where potential developers desire not only profits but also status, as measured by their rank in the height hierarchy. The optimal height in equilibrium is a function of the cost and benefits of building as well as the height of surrounding buildings. Using data from New York City, I empirically estimate skyscraper height over the 20th century. The results show that the quest for status has increased building height by about 15 floors above the non-status profit maximizing height. In addition, I provide estimates of which buildings are "too tall" and by how many floors.
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Bibliographic InfoPaper provided by Department of Economics, Rutgers University, Newark in its series Working Papers Rutgers University, Newark with number 2008-002.
Length: 38 pages
Date of creation: Feb 2008
Date of revision:
Skyscrapers; building height; status; New York City;
Other versions of this item:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- N62 - Economic History - - Manufacturing and Construction - - - U.S.; Canada: 1913-
- R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
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