Date of Award:
Doctor of Philosophy (PhD)
Paul M. Jakus
This dissertation attempts to provide a comprehensive examination on the non-market valuation of the effect of open space amenities and local public infrastructure on the value of urban land and housing with both spatial heterogeneity and project heterogeneity. The demand for raw land is a derived demand for housing built on it. Therefore, we need to examine the land market and the housing market together. On the one hand, we estimate the value of urban land in a market that does not satisfy the usual assumptions of a competitive market structure as well as incentive incompatibility issues for transaction participants, with an application to a Chinese regional wholesale land market. These two violations to the traditional hedonic theory also generate two separate valuations on land with differentiated characteristics. On the other hand, we utilize the relative plane coordinates system, the three-dimensional distances, as well as the aggregate weight matrix, to implement the spatial hedonic estimation on the high-rise residential buildings in the same regional housing retail market in China. After these two steps, this dissertation, therefore, focuses on the profit maximization behavior of the property developer, which is the key role to link the factor market (i.e., the land market) and the commodity market (i.e., the housing market) together. Two methods are then employed to implement the hypothesis test on the hedonic price estimation including both inputs and outputs. First, a set of partial derivatives of the profit function with respect to various characteristics gives us the relationship between the marginal valuations in the land market and in the housing market. Second, we introduce a joint estimation approach that we call the spatial full information maximum likelihood (SFIML), which considers the land market, the housing market, and the property developer's profit maximization behavior all together in the estimation. Finally, we conduct a hypothesis test in both of these two scenarios to examine the validity of our linked markets assumption on the hedonic price estimation.
Liu, Lu, "Three Essays on Environmental- and Spatial-Based Valuation of Urban Land and Housing" (2010). All Graduate Theses and Dissertations. 726.
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