Three Essays on Property: The Microeconomic Foundations of Locational Obsolescence; Holdouts and Cartel Formations in the Land Assembly Process; Compensation for Land Use Regulation: The Lucas Case

Chapter I. The microeconomic foundations of locational obsolescence. Conventional wisdom holds that locational obsolescence is caused by externalities, yet this view implies that externalities fall primarily on building, rather than land, values. Evidence is provided herein that a more general cause is misallocated land. The analysis is based on a model of a market with two land uses. It is shown that even if no externalities are present, locational obsolescence can exist if land is misallocated. With an externality, there is no locational obsolescence at the market allocation, while at the optimal allocation only an externality can produce locational obsolescence. Externalities therefore are neither necessary nor sufficient conditions for locational obsolescence.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Finance

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2014

Author dc:creator

• Trefzger, Joseph William

Contributors dc:contributor

• Colwell, P.,

• Economics, Finance

Identifier

(UMI)AAI9411803

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/72588