Land Value Capitalization in Local Public Finance

Starrett, David A.

doi:10.1086/260967

Cited by 83 publications

(31 citation statements)

References 4 publications

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“…These findings reinforce the earlier theoretical results of Lind (1973) and Starrett (1981), as well as simulation results from Sieg et al (2004) and Smith et al (2004), where predicted changes in housing prices bear little resemblance to predicted changes in benefits. Thus, the collective evidence from the sorting literature suggests that capitalization effects for amenities are best interpreted literally, as a statistical description of changes in housing asset values.…”

Section: The Wedge Between Capitalization Effects and Benefit Measuressupporting

confidence: 90%

Equilibrium Sorting Models of Land Use and Residential Choice

Klaiber

Kuminoff

2014

The Oxford Handbook of Land Economics

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Section: The Wedge Between Capitalization Effects and Benefit Measuressupporting

confidence: 90%

Equilibrium Sorting Models of Land Use and Residential Choice

Klaiber

Kuminoff

2014

The Oxford Handbook of Land Economics

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“…These findings are also important to the early proposals to use changes in land prices to measure the effects of spatially delineated changes in public goods (Lind, 1973;Starrett, 1981). Capitalization relies on two key assumptions: (a) no direct effects of the change being evaluated at the boundary of the area and (b) no sorting within the community.…”

Section: Welfare Estimates and The Willig Conditionmentioning

confidence: 95%

Estimating the General Equilibrium Benefits of Large Policy Changes: The Clean Air Act Revisited

Sieg¹,

Smith²,

Banzhaf³

et al. 2000

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“…Land value finance is used to recover the capital cost of development by capturing some or all of the increments in land value resulting from the initial outlay (Medda and Modelewska, 2009;. Land value capture finance, to fund public goods by capitalizing on land rents, has a long tradition in public finance, as value capture can stimulate further land development, economic growth, and increasing property values (Starrett, 1981;Roukouni and Medda, 2012).…”

Section: Literature Review: Mechanisms In Innovative Real Estate Devementioning

confidence: 99%

Innovative real estate development finance – evidence from Europe

Squires

Hutchison

Adair

et al. 2016

Journal of Financial Management of Property and Construction

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Purpose – This research aims to provide an insight into large-scale real estate projects in Europe and how they are using a more innovative blend of finance. Design/methodology/approach – The methodology involved a mix of desk-based study, interviews and case studies. Interviews were held with financiers, policymakers, developers, investors, fund managers and academics. The specific case projects were Battersea Power Station Development in London; Leipziger Platz site in Berlin; and the Lammenschans site in the city of Leiden, The Netherlands. Findings – The research found that there is growth in the blend of financial products used in real estate development within large-scale mixed-use projects. This new blend is set with greater equity financing, often from domestic and foreign consortiums generating institutional funds – alongside private debt financing – that utilise a mix of large-scale multi-bank finance. Practical implications – The scale of the challenge in financing real estate development allied with capital budget constraints has meant that the appetite for innovative finance mechanisms has gained considerable momentum in practice and policy. This research investigates current examples in development finance and provides a discussion of the opinion of key multi-stakeholder participants in the individual cases, and trends more strategically at a broader level. Originality/value – This detailed study of three major development sites and at a more broader strategic level is significant, in that it provides a better understanding of the differing blends of finance that are being used.

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Land Value Capitalization in Local Public Finance

Cited by 83 publications

References 4 publications

Equilibrium Sorting Models of Land Use and Residential Choice

Equilibrium Sorting Models of Land Use and Residential Choice

Estimating the General Equilibrium Benefits of Large Policy Changes: The Clean Air Act Revisited

Innovative real estate development finance – evidence from Europe

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