Functional obsolescence in real estate occurs because of technological change. A theoretical model suggests that the early years of building life are characterized by functional obsolescence that is undiminished by reinvestment (quot;curesquot; in appraisal terminology). Later, observable...

This study considers the alternatives available for transferring agricultural property on the urban periphery. The model examines the conditions under which market participants sell or exchange farmland. Contrary to popular opinion, we find that simultaneous exchanges are still feasible in the...

As the real estate market becomes more complex, the role of middlemen becomes more central to its efficient operation. Middlemen take on informational roles including marketing, screening, and matching. The real costs incurred in many of these roles are not included in the regulatory...

This paper examines the incentive and efficiency implications of buyer brokerage. We show that it is possible to perfectly align the interests of the seller with those of his agent and the interests of the buyer with those of his agent. Furthermore, effort levels can be efficient. This result is...

The public sector constrains the size and shape of lots and buildings via zoning ordinances and subdivision regulations. Zoning ordinances utilize setback requirements, open space ratios, minimum lot area and floor-to-area ratios. Subdivision regulations utilize street and sidewalk spacing...

This paper proposes a non-parametric method for estimating spatial price functions. Space is divided into squares. The independent variables are barycentric coordinates that uniquely describe the location of observations in space. The regression coefficients are estimates of the height of the...

This paper examines the incentive and efficiency implications of buyer brokerage. We explore an alternative compensation system for buyer brokerage. Under this system the total commission is independent of the transaction price, and the listing broker receives a percentage of the selling price...

The differences in the ownership structures of downtown retail districts and shopping centers may give rise to varying space allocations and rental contracts found in these markets. This article specifically examines the value-enhancing aspects of percentage leases and explores the mechanisms of...

Housing reform in China is moving towards privatization or marketization of public housing. To be successful, the reform requires that policy makers allow housing rent differentials to arise and permit reform in wages parallel to reform in rent. This paper analyses the effects of occupational...

A two-tiered, front-end-loaded tender offer system is shown to catalyze a market for partial property rights. This market would obviate any legitimate need for governmental zoning, and thus would put an end to zoning's inefficiency and inequity. The proposed system would facilitate development...