Forced Development and Urban Land Prices
Posted: 21 Jun 2004
Abstract
This paper examines the distortions in property markets resulting from government actions to alleviate externalities associated with vacant lots. Using an equilibrium based real option model, the analysis indicates that announcement of a program of forced development may actually delay market-based development. By incorporating externalities associated with vacant lots into the model, the analysis indicates that owners of neighboring developed property benefit suggesting such programs will be politically popular.
Keywords: Real Options, Development, Government Intervention
JEL Classification: G18, R5
Suggested Citation: Suggested Citation
Ambrose, Brent W., Forced Development and Urban Land Prices. Available at SSRN: https://ssrn.com/abstract=557126
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.