Land Economics: Equilibrium and Prices

This lecture explores the equilibrium in land economics, focusing on the relationship between land prices and investment returns. It covers the concept of equilibrium price, the link between land price and investment return, and the sensitivity of land prices to interest rates. The instructor discusses numerical and algebraic solutions to determine the equilibrium land price, as well as real-world statistics on land prices. The lecture concludes with a discussion on the limitations of the model in predicting actual land price changes.