A Unified Convex - Concave Model Of Urban Land Values

Authors

Mark D. Ecker, University of Northern IowaFollow
Hans R. Isakson, University of Northern IowaFollow

Document Type

Article

Keywords

Bayesian modeling, Change point, Land values, Parcel size, Spatial correlation

Journal/Book/Conference Title

Regional Science and Urban Economics

Volume

35

Issue

3

First Page

265

Last Page

277

Abstract

This study develops and fits a nonlinear, unified convex-concave model for land sales. The model's flexibility accommodates convexity for small parcels, concavity for large parcels, a non-deterministic change point while accounting for spatial correlation. All parameters are fit simultaneously from a Bayesian perspective using Markov Chain Monte Carlo techniques. Virtually all previous models for land sales are shown to be special cases of the unified model. The results indicate an 86.9% probability of convexity (plottage) for parcels smaller than 3516 ft2. © 2004 Published by Elsevier B.V.

Department

Department of Economics

Original Publication Date

5-1-2005

DOI of published version

10.1016/j.regsciurbeco.2004.04.003

Recommended Citation

Ecker, Mark D. and Isakson, Hans R., "A Unified Convex - Concave Model Of Urban Land Values" (2005). Faculty Publications. 2951.
https://scholarworks.uni.edu/facpub/2951