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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: gpowell who wrote (62804)	4/26/2005 6:38:55 PM
From: Moominoid	Read Replies (1) \| Respond to of 74559

"It's been estimated that "only" a quarter of the development fees are absorbed by a reduction in the value of the land. " Elroy says that 100% is absorbed by the landowner and the only affect then on housing prices is going to be through less landowners selling, but he argues that the supply of land is completely elastic and so that doesn't matter either.... The thing about Glaeser is he is provocative but like a lot of big name economists (such as Krugman) goes bumbling into areas that they are unfamiliar with and doesn't read the existing literature on the topic. If I felt like it I am sure I can dig up some empirical studies of this. The work I did on urban geography was about the changing population density gradient over time. I didn't really go beyond that. I was also a real estate market analyst for a few months in 1990 in London. I was pretty clueless about the whole business in retrospect :) I also developed a model to forecast house prices. I based it mainly on the Bank of England's model. But it wasn't much good.... David