Article Abstract:
An implicit assumption of land use theory is that potential renters are infinite and that bid rent equals the maximum rent that anyone would pay at a given location. The reality of markets is the number of renters is small, and it is necessary to create a bid rent theory to analyze this situation. Research into a finite renters market is conducted using a model in which the rent bid of land units varies among renters and land units. Rent profiles are derived from two bidding procedures: free-unit-size bidding and single-unit-size bidding Under free-unit-size bidding, the rent profile corresponds to the second-highest reservation rent offered, indicating that bid rent can be used as a relevant rent profile. Under single-unit-size bidding, a bid rent profile was derived that was analogous to the classical density model of bid rent.
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Article Abstract:
The hedonic property value methodology is shown to be a good measure of the effects of highway noise as a localized externality. Measuring localized externality damages by employing the hedonic techniques involves two stages: estimating the hedonic price schedule and deriving benefit measures. There are several good reasons for using hedonic methods in studying highway noise. Highway noise is considered an aesthetic effect, so it cannot be measured with dose-response techniques. With hedonic techniques, regression specification is easier because there is no significant variation of neighborhood and governmental characteristics within the sample. Damages to residents are clearly shown by highway noise hedonic studies, mainly because externality is experienced only at the home.
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Article Abstract:
Inefficiency resulting from inadequate mortgage financing in Seoul, Korea, was investigated. The data were collected from 1,514 Seoul housing surveys conducted in 1982. A two-sector capital allocation model demonstrated that urban housing received an insufficient amount of capital in 1982. The inefficiency was the result of inadequate housing finance. Improved mortgage financing would have resulted in increased efficiency.
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