IDEAS home Printed from https://ideas.repec.org/a/bla/ajecsc/v70y2011i1p30-49.html
   My bibliography  Save this article

Land Value: Seven Major Questions in the Analysis of Urban Land Values

Author

Listed:
  • ÜNsal ÖZdilek

Abstract

A review of the literature on land and its value reveals seven sources of ambiguity: 1) a precise definition of the type of land under investigation is frequently absent, 2) the temporal, and 3) the spatial aspects of the land value attributes might be inconsistently specified, 4) the relevance of the valuation methods used is often overlooked, 5) the separate land value is a mere by-product of the total property value as a rule, and thus lacks proper focus, 6) the different agents involved in land markets are not always taken into account, and finally, 7) the explanations for the unpredictable aspects of land value are sporadic. This article explores each of these areas of ambiguity.

Suggested Citation

  • ÜNsal ÖZdilek, 2011. "Land Value: Seven Major Questions in the Analysis of Urban Land Values," American Journal of Economics and Sociology, Wiley Blackwell, vol. 70(1), pages 30-49, January.
    • Handle: RePEc:bla:ajecsc:v:70:y:2011:i:1:p:30-49
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1536-7150.2010.00762.x
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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.
    2. George W. Gau & Tsong‐Yue Lai & Ko Wang, 1992. "Optimal Comparable Selection and Weighting in Real Property Valuation: An Extension," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 20(1), pages 107-123, March.
    3. Pace, R Kelley, 1995. "Parametric, Semiparametric, and Nonparametric Estimation of Characteristic Values within Mass Assessment and Hedonic Pricing Models," The Journal of Real Estate Finance and Economics, Springer, vol. 11(3), pages 195-217, November.
    4. Davis, Morris A. & Heathcote, Jonathan, 2007. "The price and quantity of residential land in the United States," Journal of Monetary Economics, Elsevier, vol. 54(8), pages 2595-2620, November.
    5. Glaeser, Edward L. & Gyourko, Joseph & Saiz, Albert, 2008. "Housing supply and housing bubbles," Journal of Urban Economics, Elsevier, vol. 64(2), pages 198-217, September.
    6. Hans R. Isakson, 1997. "An Empirical Analysis of the Determinants of the Value of Vacant Land," Journal of Real Estate Research, American Real Estate Society, vol. 13(2), pages 103-114.
    7. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    8. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    9. Sun Sheng Han & Ann Basuki, 2001. "The Spatial Pattern of Land Values in Jakarta," Urban Studies, Urban Studies Journal Limited, vol. 38(10), pages 1841-1857, September.
    10. Cheshire, Paul & Sheppard, Stephen, 1995. "On the Price of Land and the Value of Amenities," Economica, London School of Economics and Political Science, vol. 62(246), pages 247-267, May.
    11. Davis, Morris A. & Palumbo, Michael G., 2008. "The price of residential land in large US cities," Journal of Urban Economics, Elsevier, vol. 63(1), pages 352-384, January.
    12. John M. Clapp, 1990. "A Methodology for Constructing Vacant Land Price Indices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 18(3), pages 274-293, September.
    13. Anglin, Paul M & Gencay, Ramazan, 1996. "Semiparametric Estimation of a Hedonic Price Function," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 633-648, Nov.-Dec..
    14. Florenz Plassmann & T. Nicolaus Tideman, 2003. "A Framework for Assessing the Value of Downtown Land," Working Papers e07-5, Virginia Polytechnic Institute and State University, Department of Economics.
    15. Palmquist, Raymond B, 1984. "Estimating the Demand for the Characteristics of Housing," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 394-404, August.
    16. David L. Chicoine, 1981. "Farmland Values at the Urban Fringe: An Analysis of Sale Prices," Land Economics, University of Wisconsin Press, vol. 57(3), pages 353-362.
    17. Bartik, Timothy J., 1986. "Neighborhood revitalization's effects on tenants and the benefit-cost analysis of government neighborhood programs," Journal of Urban Economics, Elsevier, vol. 19(2), pages 234-248, March.
    18. Brookshire, David S & Thayer. Mark A & Tschirhart, John & Schulze, William D, 1985. "A Test of the Expected Utility Model: Evidence from Earthquake Risks," Journal of Political Economy, University of Chicago Press, vol. 93(2), pages 369-389, April.
    19. Douglas S. Bible & Cheng-Ho Hsieh, 1996. "Applications of Geographic Information Systems for the Analysis of Apartment Rents," Journal of Real Estate Research, American Real Estate Society, vol. 12(1), pages 79-88.
    20. McMillen, Daniel P., 1996. "One Hundred Fifty Years of Land Values in Chicago: A Nonparametric Approach," Journal of Urban Economics, Elsevier, vol. 40(1), pages 100-124, July.
    21. Weinberg, Daniel H. & Friedman, Joseph & Mayo, Stephen K., 1981. "Intraurban residential mobility: The role of transactions costs, market imperfections, and household disequilibrium," Journal of Urban Economics, Elsevier, vol. 9(3), pages 332-348, May.
    22. Peter Abelson, 1997. "House and Land Prices in Sydney from 1931 to 1989," Urban Studies, Urban Studies Journal Limited, vol. 34(9), pages 1381-1400, August.
    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. Sebastian Keiler, 2013. "Commercial property prices – what should be measured?," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Proceedings of the Sixth IFC Conference on "Statistical issues and activities in a changing environment", Basel, 28-29 August 2012., volume 36, pages 259-269, Bank for International Settlements.
    2. Copiello Sergio & Bonifaci Pietro, 2018. "Depreciated Replacement Cost: Improving the Method Through a Variant Based on three Cornerstones," Real Estate Management and Valuation, Sciendo, vol. 26(2), pages 33-47, June.
    3. Christian Reiner & Robert Musil, 2023. "The regional variation of a housing boom. Disparities of land prices in Austria, 2000–2018 [Die regionale Differenzierung eines Immobilien-Booms. Disparitäten der Baulandpreise in Österreich, 2000–," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 43(1), pages 125-146, April.

    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. Palmquist, Raymond B., 2006. "Property Value Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 16, pages 763-819, Elsevier.
    2. Glumac, Brano & Herrera-Gomez, Marcos & Licheron, Julien, 2019. "A hedonic urban land price index," Land Use Policy, Elsevier, vol. 81(C), pages 802-812.
    3. GLUMAC Brano & HERRERA-GOMEZ Marcos & LICHERON Julien, 2018. "A residential land price index for Luxembourg: Dealing with the spatial dimension," LISER Working Paper Series 2018-07, Luxembourg Institute of Socio-Economic Research (LISER).
    4. Mustafa Kahveci & Ernil Sabaj, 2017. "Determinant of Housing Rents in Urban Albania: An Empirical Hedonic Price Application with NSA Survey Data," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 5(2), pages 51-65.
    5. Jeanty, Pierre Wilner & Kraybill, David S. & Libby, Lawrence W. & Sohngen, Brent, 2002. "Effects Of Local Development Pressure On Land Prices: A Spatial Economic Approach," 2002 Annual meeting, July 28-31, Long Beach, CA 19767, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Hannonen Marko, 2014. "Urban Housing Policy Considerations: Perspectives from the Finnish Housing Market," Journal of Heterodox Economics, Sciendo, vol. 1(2), pages 114-130, December.
    7. Alan T. K. Wan & Shangyu Xie & Yong Zhou, 2017. "A varying coefficient approach to estimating hedonic housing price functions and their quantiles," Journal of Applied Statistics, Taylor & Francis Journals, vol. 44(11), pages 1979-1999, August.
    8. I. R. Aliu, 2016. "Marginal land use and value characterizations in Lagos: untangling the drivers and implications for sustainability," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 18(6), pages 1615-1634, December.
    9. Lall, Somik V. & Lundberg, Mattias, 2008. "What are public services worth, and to whom? Non-parametric estimation of capitalization in Pune," Journal of Housing Economics, Elsevier, vol. 17(1), pages 34-64, March.
    10. Bourassa, Steven C. & Hoesli, Martin & Scognamiglio, Donato & Zhang, Sumei, 2011. "Land leverage and house prices," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 134-144, March.
    11. Jaume Garcia & Josep Maria Raya, 2011. "Price and Income Elasticities of Demand for Housing Characteristics in the City of Barcelona," Regional Studies, Taylor & Francis Journals, vol. 45(5), pages 597-608.
    12. Huang, Chung L. & Lin, Biing-Hwan, 2006. "A Hedonic Analysis on the Implicit Values of Fresh Tomatoes," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25404, International Association of Agricultural Economists.
    13. Teuber, Ramona, 2010. "Estimating the Demand for Sensory Quality – Theoretical Considerations and an Empirical Application to Specialty Coffee," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(03), pages 1-14, September.
    14. Stefano Giglio & Matteo Maggiori & Johannes Stroebel, 2016. "No‐Bubble Condition: Model‐Free Tests in Housing Markets," Econometrica, Econometric Society, vol. 84, pages 1047-1091, May.
    15. Celia Bilbao-Terol, 2009. "Impacts of an Iron and Steel Plant on Residential Property Values," European Planning Studies, Taylor & Francis Journals, vol. 17(9), pages 1421-1436, September.
    16. George H. Lentz & Ko Wang, 1998. "Residential Appraisal and the Lending Process: A Survey of Issues," Journal of Real Estate Research, American Real Estate Society, vol. 15(1), pages 11-40.
    17. Schilling, Brian J. & Sullivan, Kevin P. & Duke, Joshua M., 2013. "Do Residual Development Options Increase Preserved Farmland Values?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-17.
    18. Elias Oikarinen & Janne Engblom, 2012. "Regional differences in housing price dynamics: panel data evidence," ERES eres2012_059, European Real Estate Society (ERES).
    19. Chunfang Zhao & Yingliang Wu & Yunfeng Chen & Guohua Chen, 2023. "Multiscale Effects of Hedonic Attributes on Airbnb Listing Prices Based on MGWR: A Case Study of Beijing, China," Sustainability, MDPI, vol. 15(2), pages 1-21, January.

    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:bla:ajecsc:v:70:y:2011:i:1:p:30-49. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0002-9246 .

    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.