Premium
The Asset Approach to Pricing Urban Land: Empirical Evidence
Author(s) -
Capozza Dennis R.,
Schwann Gregory M.
Publication year - 1989
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00481
Subject(s) - metropolitan area , economics , capital asset pricing model , asset (computer security) , empirical evidence , consumption based capital asset pricing model , econometrics , empirical modelling , financial economics , land price , microeconomics , computer science , geography , simulation , philosophy , computer security , archaeology , epistemology , agricultural economics
Many papers have attempted to explain Intelmetropolitan variations in the price of housing using multi‐equation models of the metropolitan housing market. This paper uses a long‐run equilibrium urban asset model to explain such variations. The model builds upon previous models that introduce uncertainty into the dynamic urban model of land conversion. The empirical results strongly support the asset approach to valuing land in urban areas.