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PLANNING BY CONTRACT: THE LEASEHOLD FOUNDATION OF A COMPREHENSIVELY PLANNED CAPITALIST LAND MARKET
Author(s) -
Lai Lawrence WaiChung
Publication year - 2005
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2005.00583.x
Subject(s) - leasehold estate , incentive , government (linguistics) , revenue , foundation (evidence) , business , value (mathematics) , property rights , finance , resource (disambiguation) , market economy , economics , law and economics , law , microeconomics , political science , computer network , linguistics , philosophy , machine learning , computer science
Hong Kong has used a system of planning by consent that predates planning by edict. By selling long leases on a contractual basis, the government has an incentive to provide the contractual terms, obligations and rights to the leaseholder that maximise the value of the land. This system has been effective in generating fiscal revenue and producing good planning outcomes in a resource‐poor economy.