IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v36y1999i8p1283-1293.html
   My bibliography  Save this article

Re-establishing the Rent Gap: An Alternative View of Capitalised Land Rent

Author

Listed:
  • Daniel J. Hammel

    (Department of Geography-Geology, Illinois State University, Campus Box 4400, Normal, IL61790-4400, USA, dhammel@ilstu.edu)

Abstract

The debate between the proponents of the rent gap hypothesis and Steven Bourassa concerning its internal consistency centres on the role of land use in capitalised land rent. Bourassa argues that capitalised land rent is nonsensical because it is determined in part by land use which is in conflict with land rent theory. The paper explores the determinants of capitalised land rent by reviewing the rent gap hypothesis and related research, and argues that the issue of scale is implicit in the rent gap. Land rent can be determined at a minimum of two scales resulting in at least two different land rents. This argument rectifies Bourassa's contentions, and is consistent with the theoretical foundations of the rent gap.

Suggested Citation

  • Daniel J. Hammel, 1999. "Re-establishing the Rent Gap: An Alternative View of Capitalised Land Rent," Urban Studies, Urban Studies Journal Limited, vol. 36(8), pages 1283-1293, July.
    • Handle: RePEc:sae:urbstu:v:36:y:1999:i:8:p:1283-1293
    DOI: 10.1080/0042098992999
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/0042098992999
    Download Restriction: no
    File URL: https://libkey.io/10.1080/0042098992999?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. Steven C. Bourassa, 1993. "The Rent Gap Debunked," Urban Studies, Urban Studies Journal Limited, vol. 30(10), pages 1731-1744, December.
    2. Edel, Matthew & Sclar, Elliott, 1975. "The distribution of real estate value changes: Metropolitan Boston, 1870-1970," Journal of Urban Economics, Elsevier, vol. 2(4), pages 366-387, October.
    3. Warren R. Seyfried, 1963. "The Centrality of Urban Land Values," Land Economics, University of Wisconsin Press, vol. 39(3), pages 275-284.
    Full references (including those not matched with items on IDEAS)

    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. Ismael Yrigoy, 2019. "Rent gap reloaded: Airbnb and the shift from residential to touristic rental housing in the Palma Old Quarter in Mallorca, Spain," Urban Studies, Urban Studies Journal Limited, vol. 56(13), pages 2709-2726, October.
    2. Chakarin Bejrananda & Yuk Lee & Thanchanok Bejrananda, 2016. "Spatial Patterns Of Economic Rents: Developing Suvarnabhumi International Airport, Thailand," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 11(03), pages 1-13, September.
    3. Michael Iacono & David Levinson, 2017. "Accessibility dynamics and location premia: Do land values follow accessibility changes?," Urban Studies, Urban Studies Journal Limited, vol. 54(2), pages 364-381, February.
    4. Adam Millard-Ball, 2000. "Moving Beyond the Gentrification Gaps: Social Change, Tenure Change and Gap Theories in Stockholm," Urban Studies, Urban Studies Journal Limited, vol. 37(9), pages 1673-1693, August.
    5. Eric Clark, 1995. "The Rent Gap Re-examined," Urban Studies, Urban Studies Journal Limited, vol. 32(9), pages 1489-1503, November.
    6. Allen J. Scott, 2019. "City-regions reconsidered," Environment and Planning A, , vol. 51(3), pages 554-580, May.
    7. Hamil Pearsall, 2013. "Superfund Me: A Study of Resistance to Gentrification in New York City," Urban Studies, Urban Studies Journal Limited, vol. 50(11), pages 2293-2310, August.
    8. Yan, Haiming & Yang, Huicai & Guo, Xiaonan & Zhao, Shuqin & Jiang, Qun'ou, 2022. "Payments for ecosystem services as an essential approach to improving ecosystem services: A review," Ecological Economics, Elsevier, vol. 201(C).
    9. Callum Ward & Manuel B Aalbers, 2016. "Virtual special issue editorial essay: ‘The shitty rent business’: What’s the point of land rent theory?," Urban Studies, Urban Studies Journal Limited, vol. 53(9), pages 1760-1783, July.
    10. Eric Clark, 1994. "Towards a Copenhagen Interpretation of Gentrification," Urban Studies, Urban Studies Journal Limited, vol. 31(7), pages 1033-1042, August.
    11. R A Erickson, 1982. "Employment Density Variation in the Baltimore Metropolitan Area," Environment and Planning A, , vol. 14(5), pages 591-601, May.
    12. Sun Sheng Han, 2005. "Polycentric Urban Development and Spatial Clustering of Condominium Property Values: Singapore in the 1990s," Environment and Planning A, , vol. 37(3), pages 463-481, March.
    13. Tom Kauko, 2004. "Towards Infusing Institutions and Agency into House Price Analysis," Urban Studies, Urban Studies Journal Limited, vol. 41(8), pages 1507-1519, July.
    14. Lai, Yani & Tang, Bosin & Chen, Xiangsheng & Zheng, Xian, 2021. "Spatial determinants of land redevelopment in the urban renewal processes in Shenzhen, China," Land Use Policy, Elsevier, vol. 103(C).
    15. Jeremy Atack & Robert A. Margo, 1996. ""Location, Location, Location!" The Market for Vacant Urban Land: New York 1835-1900," NBER Historical Working Papers 0091, National Bureau of Economic Research, Inc.
    16. Chakarin Bejrananda & Yuk Lee & Thanchanok Khamkaew, 2015. "The Spatial Pattern of Economic Rents of An Airport Development Area: Lessons Learned from the Suvarnabhumi International Airport, Thailand," Proceedings of International Academic Conferences 2604285, International Institute of Social and Economic Sciences.
    17. Daniel You-Ren Yang & Jung-Che Chang, 2018. "Financialising space through transferable development rights: Urban renewal, Taipei style," Urban Studies, Urban Studies Journal Limited, vol. 55(9), pages 1943-1966, July.
    18. D R Vining Jr & H Hiraguchi, 1977. "Some Evidence from Japan on the Efficiency of Land Markets," Environment and Planning A, , vol. 9(9), pages 975-984, September.
    19. Kevin A. Bryan & Pierre-Daniel G. Sarte, 2009. "Semiparametric estimation of land price gradients using large data sets," Economic Quarterly, Federal Reserve Bank of Richmond, vol. 95(Win), pages 53-74.
    20. Ernesto López-Morales & Claudia Sanhueza & Sebastián Espinoza & Felipe Ordenes & Hernán Orozco, 2019. "Rent gap formation due to public infrastructure and planning policies: An analysis of Greater Santiago, Chile, 2008–2011," Environment and Planning A, , vol. 51(7), pages 1536-1557, October.

    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:36:y:1999:i:8:p:1283-1293. 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.