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Economics, real estate and the supply of land by Alan W. Evans

Posted On March 24, 2017 at 6:20 am by / Comments Off on Economics, real estate and the supply of land by Alan W. Evans

By Alan W. Evans

The booklet attracts jointly the commercial literature in terms of the provision of land for improvement. the traditional view seems to be that the proprietors of land haven't any curiosity except to permit their land for use for the job which might yield the top source of revenue. yet actually this isn't so and the book's objective is to illustrate this, to set out the explanations and to teach the industrial results of the truth that landowners produce other motives.The ebook covers the availability of land for city improvement and indicates how land has features which differentiate it from different elements of creation with a purpose to additionally impact its offer for a few makes use of, e.g. land is mounted in situation and its rate and price are inseparable from the place it is.New mild is solid out there for land (by focusing on the provision side), and on land use making plans (by taking an monetary viewpoint).

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But it can also be seen that any form of land tax which differentiated between land uses would not be neutral in its effect, but would result in a shift in the use of land from the higher to the lower taxed use with the tax being passed on in the form of a higher price for the product of the land taxed at the higher rate. Ricardian theory remembered I said in the introduction to this chapter that many people have seemed sometimes only to remember the Ricardian analysis of land values. This was particularly evident during the 1980s in arguments over the effects of planning restrictions, particularly those restricting the development of housing in southern England.

Most obviously any increase in the population living in the urban area will lead to an overall increase in the demand for agricultural products. This can be represented in the figure by an upward shift in the rent gradient to the dotted line BS. To provide the increased product some additional land is brought into cultivation at the edge of the area already being farmed - the margin of cultivation is extended. The radius of the area under cultivation increases from OR to 0s so that a ring of width RS is brought into use.

Sloping downward from the left is a demand curve for land for industry, DD. The amount of land which is currently allowed to be used for industry is marked as 01 on the horizontal axis. The intersection of the vertical supply curve 11’with the demand curve DD’ fixes the initial price of land for industry OP1. On the right-hand side of the figure the demand for housing is assumed to be initially relatively low, and to be indicated by the demand curve HH’ sloping downwards from the right-hand axis.

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