Faculty Publications

A Unified Convex - Concave Model Of Urban Land Values

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

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