Lecture

Land Incidence: Economics of Soil and Real Estate

Description

This lecture delves into the concept of land incidence, exploring the relationship between land price and property price, the impact of floor area, construction costs, and profit margins. It analyzes scenarios where land price, property price, and density vary, highlighting the intricate balance in real estate economics. Lessons learned include the counterintuitive nature of land incidence when land price is endogenous. The lecture concludes by emphasizing the complexity of real-world real estate dynamics and the risks of relying solely on intuition.

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